MIB: Its A Model Driven World

There’s a corollary to Marc Andreessen’s argument that software is eating the world — the models will be in charge of running it.

That is according to Matthew W. Granade, Chief Market Intelligence Officer and a Managing Director at Point72 Asset Management. He manages the firm’s central portfolio, deploys big data and AI in systematic strategies and quantitative investing models. The philosophy is that a combination of man + machine is a superior approach to either working alone.

Granade also directs and manages Point72 Ventures, which funds early-stage companies in financial technology, enterprise automation, artificial intelligence and cybersecurity. He has an unusual and storied background – he was Editor-in-Chief of the Harvard Crimson, and later worked at Bridgewater Associates as co-head of research.

He was the co-founder of Domino Data Lab, a data science platform that seeks to build the system of record for data scientists. The quant tool enables data science teams to rapidly develop and deploy models across a diverse set of industries, including finance, agriculture, manufacturing. medicine and fast foods. Granade is still on the firm’s board of directors.

Point72 Asset Management is the successor firm to SAC Capital Advisors, the hedge fund founded by Steve A. Cohen in 1992. From $25 million in assets in 1992, SAC grew AUM to $16 billion, generating average annual returns of 30%from founding to 2013 (that’s net of the firm’s 3% + 50% fees). That ranks Cohen among the world’s best-performing hedge fund managers. The firm eventually settled a case with the SEC, hence the new firm). As the family office for Cohen, Point72 Asset Management was cleared last year to accept outside investors.

His favorite books are here; a transcript of our conversation is posted here.

You can stream/download the full conversation, including the podcast extras on iTunesBloombergOvercast, and Stitcher. Our earlier podcasts can all be found at iTunesStitcherOvercast, and Bloomberg.


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