Institutional Investors

Highlights From A Recent Interview On Applying Machine Learning To Long-Term Investing

This month, John Alberg – Euclidean Partner and Co-Founder – was interviewed by Corey Hoffstein as part of the Flirting With Models Podcast Series.  Corey and John’s conversation covers everything from the basics of machine learning and the evolution of Euclidean’s approach over the last decade, to the implications of new developments and technologies relating to neural networks.

Get The Timeless Reading eBook in PDF

Get the entire 10-part series on Timeless Reading in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

We respect your email privacy

Q2 hedge fund letters, conference, scoops etc

John Alberg

mohamed_hassan / Pixabay

Below, we point out several parts of the interview that you may find particularly interesting.  And, in the meantime, if you are interested in the perspectives and questions that guide the machine learning research John describes here, you can tap into that information in our most recent letter to investors.

Podcast Highlights

3:00 - John postulates that if value investing works, then machine learning should be able to find evidence of that fact in historical data.

7:15 – Discusses the landscape of machine learning techniques and addresses the question, “where do advanced statistical techniques end and machine learning begin?”

14:30 – Explains how the process at Euclidean has changed over time as the landscape of machine learning techniques has evolved.

16:30 – Introduces the three reasons deep learning has been interesting to Euclidean, including the opportunities to perform less factor engineering, better model sequences of data through time, and include unstructured data in Euclidean’s analysis.

25:00 – Digs into this question, “How do you gain confidence in a machine learning approach and ensure that you are not over-fitting a model?”

29:15 – Engages around the question of whether machine learning is applicable to investing given that companies, accounting and markets change, thus causing data to be non-stationary.

32:15 - John explains what ties Euclidean to the legacy of value investing.

38:15 - Corey asks John to discuss the current "p-hacking" debate and whether there are techniques that traditional factor research can learn from machine learning.

47:00 - John offers some suggestions for people who are interested in learning more about machine learning.

Article by Euclidean Technologies

LEAVE A COMMENT


Saved Articles
X
TextTExtLInkTextTExtLInk

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

Congrats! Are you a smart person?

We have an exclusive targeted for being a sophisticated and loyal reader.

Sign up for ValueWalkPremium today and get our exclusive content for 35% off.

Use coupon code vip19 or click on the button below

Limited time offer only ENDS 12/31/2019 or after next 25 subscribers take advantage whichever comes first – please do not share this discount with others

 

0