In his most recent missive, “Investing Without People”, Oaktree’s Howard Marks takes on quantitative investing. We look forward to reading Mr. Marks’ memos, as they are packed with valuable insights from a venerable career. But in this case, the questions he poses are all too familiar & in my opinion, exhibits faulty logic.
June 21, 2018
June 01, 2016
The hottest headlines in technology, whether it be autonomous driving, government surveillance, targeted ads on Facebook or quantitative investment strategies have been surrounding the ubiquitous idea of “machine learning” and “big data”. Many of the largest quantitative firms are spending significant amounts of their budgets and many years researching artificial intelligence and how it can be applied to financial markets. That said, there seems to be diversity of opinion regarding effectiveness and none seem ready to completely handover their processes to the artificial intelligence robots – the quintessential black box. When doing so a firm that was likely hypothesis-driven would move to being more data-driven, which can certainly have its challenges..”