Sink or Swim: How to Combine Quant and Traditional Asset Management Techniques

[00:02:14] – (First question) –  What role will ego and mindset play for traditional hedge funds looking to transition into quantitative investing strategies

[00:04:21] – Describes the traditional process that hedge funds use to make investment decisions and how the internal politics can hamper it

[00:06:08] – What value has portfolio managers played at hedge funds traditionally as the quarterback of a fund

[00:09:57] – A look at what Leigh has seen as he sits with teams

[00:12:20] – A look at places that have tried to simply add quant to their firm’s strategies without “tearing it down to the studs” and properly integrating them into the process

[00:15:00] – Leigh is asked to define the basics of a good investment firm’s strategies

[00:16:57] – Strategies for writing down core beliefs, whether it’s for yourself or your firm

[00:17:49] – Exploring the second step, finding a differentiating view and how to succeed with it

[00:21:43] – The importance of force ranking and structuring the unstructured 

[00:26:14] – Building factor models

[00:29:42] – How the portfolio manager position should have less room for subjectivity than at the analyst level

[00:33:44] – Is anyone integrating this kind of high-level data at the portfolio manager level into the decision making the way Leigh describes

[00:35:07] – What blind spots are created by systematizing their processes

[00:36:18] – Why much of this applies more to shorter and structured periods

[00:38:23] – Shifting to portfolio constructions and what Leigh would do to create the right mix

[00:43:39] – Shifting to management structures in these firms starting with the role of the CIO 

[00:45:24] – Looking at the different quant roles that exist in a firm and what they should be responsible for; data engineers, data analysts, pure quants, and quantitative engineer

[00:48:20] – If you are an undergrad or grad student right now interested in asset management, what are the roles you should be thinking about targeting

[00:49:25] – Why communication skills are still so important, no matter what role you are in

[00:50:25] – With all of the tools and skills that Leigh has at his disposal at Estimize, why not institute an active strategy

[00:52:01] – What has Leigh observed in the dispersion of skill in the Estimize data set 

[00:53:47] – What is the relationship between specialization and accuracy among funds

[00:55:29] – The pros and cons of the generalist

[00:56:56] – A look at Leigh’s background in War Theory and what lessons that he still draws on today

[01:00:19] – How the field of study around war and battle relates to the investing world