Online Class Notes (Tibo)

People make AI models to find investment opportunities

You can use the computer to calculate the best way you can invest.
In the past the portfolio managers had to do fundamental research to find industries but now they can design AI models to do that.

That is a more efficient way.
Many hedge funds find this way to invest. -> many hedge funds now invest this way.

Graduates come back after working in the US and learning how to design those models and use this knowledge to find and design some models in China.

You design one model and it helps you to make money / it is a very lucrative business

they make a self owned company -> they set up their own company
Then they can to collect money from public or private funds and they can use their models to earn money in the Chinese stock market

It is work in Chinese market -> it works in the Chinese market

why do the institutions investors have high speed investment models and can send our orders at high speed?
It is because they have a private single line / they have a dedicated line.

during our last conversation I mentioned this market is unwelcome for retail people -> this market does not welcome retail people / it is difficult to enter for retail investors.

If you want to invest based on fundamental you must trust your portfolio manager because they have experience in the industry.
You must trust them they have their experience to value wether this company will increase or decrease in the future. / wether the stock of the company will appreciate in the future

the performance of a fund manager is better than an AI model

in a bear market a quant model is better than fundamentals.
If I manage my wealth I will invest a large part in the quantitative model. / I will dedicate a large part to quant models.

They need them to develop models. They don’t need sales people. They only find talents, the smart people who have excellent brain.
The leverage in the Chinese market is much lower than in the US market.

to lay off (v)
The company decided to lay off 10,000 people this year

to allocate (v) distribute ressources
In a bear market it is better to allocate 70% of the portfolio to quantitative trading

allocation (n)
My current allocation is 70% in commodities and 30% in stocks

dedicated (adj) specifically for someone
as a vip client he has a dedicated line to our company

to commute (v) to go from home to work and back
It takes me 80m to commute

suburb (n) a place far from the city center
people like to live in the suburb because they can have a garden

Pronunciation

quantitative

bull

bear

brain