Latest news with #BalyasnyAssetManagement
Yahoo
08-07-2025
- Business
- Yahoo
The world is too complex for AI to pick your stocks, a hedge fund quant says
A top hedge fund quant says ChatGPT just isn't ready to pick stocks like a real investor. Gappy Paleologo warned AI still can't match the gut instincts and context humans bring to investing. Some say Wall Street's big bet on AI might be getting ahead of what the tech can actually do. The dream of letting ChatGPT build your investment portfolio may still be far off, according to one of the hedge fund world's top quant minds. Gappy Paleologo, a partner at Balyasny Asset Management and a veteran of firms like Citadel and Hudson River Trading, said large language models like OpenAI's ChatGPT lack the real-world grounding needed to make serious investment decisions. "The decision to invest in a particular stock is a very demanding cognitive function, and I don't see that really being replicated very well," Paleologo said on Bloomberg's "Money Stuff" podcast. Despite the hype surrounding AI in finance, Paleologo argued that machine learning models are still disconnected from how investors experience companies through direct observation, human conversation, and a holistic understanding of industries and people. "Our inputs are much more complex than just a string of text or YouTube videos," he said. "An investor has a fundamentally different experience of a company than an LLM that has an experience that is mediated by multiple layers of processing." While AI may be able to handle baseline tasks like replicating a researcher's writing style or summarizing earnings calls, Paleologo remains skeptical of its ability to generate conviction around trades. The human edge, in his view, is still rooted in messy, real-world intuition. That is not to say AI won't change the game. He said he expects large firms like Bloomberg to roll out advanced prompt-based tools that replace traditional terminals, allowing investors to interact with data more naturally. "This is going to happen in one form or another," he said. " But I don't think AI is that smart also. So I think that having a baseline system would be already pretty good." Paleologo's caution comes as Wall Street is increasingly betting on AI to fuel the next wave of stock market growth. Tech stocks, especially in the AI space, have soared since ChatGPT's launch in 2022, with the Magnificent Seven — Apple, Amazon, Alphabet, Meta, Microsoft, Tesla, and Nvidia — now making up roughly one-third of the S&P 500's total market value. But that optimism is meeting resistance. Market strategists like Callie Cox have warned that the AI trade could hit a wall amid rising tariffs, inflationary pressure, and slowing consumer demand. Others have drawn historical parallels to the dot-com bubble. Richard Bernstein, chief investment officer of the $15 billion investment firm Richard Bernstein Advisors, said the AI mania is "eerily similar" to the overhype of internet stocks in the late 1990s. As Paleologo sees it, AI may eventually integrate into investors' toolkits, but for now, it still lacks the sensory, intuitive, and contextual capabilities that define truly strategic investing. Read the original article on Business Insider
Bloomberg
21-06-2025
- Business
- Bloomberg
Odd Lots: Giuseppe Paleologo on Quant Investing at Multi-Strat Hedge Funds
Quantitative investing is one of those terms that you hear all the time, but there's various explanations of what it actually means, or how quants actually make money. And of course, the term means different things in different contexts. In this live episode, recorded at the Bloomberg Equity Intelligence Summit on June 12, we speak again with Giuseppe Paleologo, the head of quantitative research at Balyasny Asset Management. We talk about his role, what quant investing actually is, and what the future of the space actually entails.
Bloomberg
21-06-2025
- Business
- Bloomberg
Giuseppe Paleologo on Quant Investing at Multi-Strat Hedge Funds
Listen to Odd Lots on Apple Podcasts Listen to Odd Lots on Spotify Subscribe to the newsletter Quantitative investing is one of those terms that you hear all the time, but there's various explanations of what it actually means, or how quants actually make money. And of course, the term means different things in different contexts. In this live episode, recorded at the Bloomberg Equity Intelligence Summit on June 12, we speak again with Giuseppe Paleologo, the head of quantitative research at Balyasny Asset Management. We talk about his role, what quant investing actually is, and what the future of the space actually entails.
Bloomberg
10-06-2025
- Business
- Bloomberg
Balyasny Hires Ex-BOE Deputy Governor Broadbent in Macro Push
Balyasny Asset Management has hired Ben Broadbent, a former deputy governor of the Bank of England, to bolster its rank of macro economic experts. Broadbent will join Balyasny later this month as its head of European macro strategy, according to a spokesman for the $25 billion multistrategy hedge fund. Broadbent did not respond to requests for comment.
Mint
04-06-2025
- Business
- Mint
Balyasny Taps Ex-Deutsche Bank Basis Trader Jamie Mansell
(Bloomberg) -- Balyasny Asset Management has hired Jamie Mansell, who was co-head of European government bond trading at Deutsche Bank AG until recently, according to people familiar with the matter. Mansell, who specializes in the highly leveraged bond basis trade, made over €200 million ($228 million) for Germany's biggest bank in recent years, the people said, asking not to be identified discussing non-public information. He was previously with Morgan Stanley. He will join Balyasny's macro business as an associate portfolio manager later this year, one of the people said. Mansell — who co-headed EGB with Bennit Shah — and representatives for Balyasny and Deutsche Bank declined to comment. Some of the largest hedge funds employ the so-called basis trade, betting on price differences between cash Treasuries and futures. In order to profit from the tiny gap, traders typically borrow heavily, often 50 to 100 times the capital invested. The highly popular trade has ballooned, with recent estimates putting the amount staked on such bets at about $1 trillion — about double the amount five years ago. Deutsche Bank's fixed income and currency trading unit increased revenues by 17% in the first quarter, outperforming most peers, buoyed mainly by a strong rates business. The unit benefited from high demand for European government bonds as investors shifted money from the US to Europe, as well as from the revival of its rates business in the US. Dmitry Balyasny's multistrategy hedge fund, which manages about $25 billion, has been beefing up its trading desks by hiring several investment managers, with some of them being offered potential payouts of as much as $50 million. In April, the fund delivered gains of about 1% during the volatility around US President Donald Trump's tariff announcements. (Adds details of role at Deutsche Bank in third paragraph. An earlier version of this story corrected Mansell's title in the headline and first paragraph.) More stories like this are available on
