Flirting with Models Jay Rajamony – Beyond Factors: Reimagining Quant Equity for the Modern Era (S7E23)
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Oct 13, 2025 Jay Rajamony, Director of Alternatives at Man Numeric, brings over 20 years of quant equity experience to the discussion. He reveals how the landscape has changed since the 2007 quant quake, emphasizing the shift in understanding 'alpha' with the rise of alternative data. Jay discusses the balancing act of managing risk in an unpredictable model world and the importance of organizational design in modern quant investing. He also highlights the fading hype of alternative data and how firms must adapt strategies and skill sets to thrive in today's intricate market.
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From Scarcity To Data Abundance
- Quant equity evolved from data scarcity to data abundance, changing how signals are discovered and applied.
- Jay Rajamony says this shift increased complexity but also improved robustness if lessons are learned.
Crowding Lessons Were Slow To Stick
- Crowding lessons before 2007 existed but lacked incentives to change until the 2008 crisis forced behavior shifts.
- Widespread failures taught the industry to value tail-risk management and alternative ideas.
Integrate Tech And Research Closely
- Build teams that tightly integrate technologists and researchers to move from idea to production quickly.
- Jay recommends open collaboration and shared IP access to speed innovation and deployment.