MIB: Matthew Granade, Point72 Asset Management

This week, we speak with Matthew W. Granade, Chief Market Intelligence Officer and a Managing Director at Point72 Asset Management. The firm uses a big data/AI approach, applying a set of systematic strategies in its quantitative investing business.

Granade directs the firm’s central portfolio 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, worked at Bridgewater Associates as co-head of research.

He is 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.

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.

The firm believes we are moving to a model driven world. Their view is that man + machine together is a superior approach to either working alone.

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.

Next week, we speak with Roger Ibbotson of Yale, and Ibbotson Associates.

 

 

 

Matthew Granade’s Favorite Books

 

Grit: The Power of Passion and Perseverance by Angela Duckworth

Superforecasting: The Art and Science of Prediction by Philip Tetlock and Dan Gardner

Wild Swans: Three Daughters of China by Jung Chang

The Tempest by William Shakespeare

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