Macro Hive Conversations With Bilal Hafeez Deepak Gurnani on Building Winning Investment Strategies
Jun 2, 2023
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Deepak's Quant Journey
- Deepak Gurnani transitioned from software engineering to quantitative investing, combining his interests in science, math, and finance.
- He developed early trading software as a student and later headed Investcorp's Hedge Fund Group before founding Versor Investments.
Avoiding Data Mining Pitfalls
- Always use a hypothesis-driven, scientific approach to quantitative investing to avoid data mining and overfitting.
- Separate data sets for model estimation and validation to ensure robustness of investment strategies.
Trend Following Convexity Explained
- Trend following profits by capturing both upward and downward market moves, creating positive convexity.
- Positive convexity offers gains larger than losses, attracting institutional portfolios seeking risk-managed returns.