Why Intercept is a podcast project from Bridge Alternatives that aims to explore new ideas in modern investment alpha. Through conversations with portfolio managers, institutional investors, academics, authors and others, we seek to gain clarity on how and why certain types of alphas exist in an ultra competitive investment landscape.
Even with terabytes stored in servers and observations over multiple decades, there’s actually very little data at our disposal in finance. Michael gives a fantastic presentation revealing the reasons why financial modeling is so hard—harder even than self-driving cars and diagnosing cancer.
Jim Simons recently participated in three interviews hosted by MIT, covering mathematics, finance, and philanthropy. These are rare and lengthy conversations with one of the industry’s most interesting and private people. As much as I enjoyed the talks, the finance portion reaffirmed my belief that Renaissance’s Medallion fund probably doesn’t owe its success to magic. No methods or technologies they employ would individually shock or awe, and I’d wager there’s no silver bullet or big secret to what they do. Believing this doesn’t diminish what Medallion has achieved, I don’t think, at all.