Photographer: SeongJoon Cho/Bloomberg

Odd Lots: Two Researchers Explain How Quants Are Going to Revolutionize Long-Term Investing

Robots can now forecast company fundamentals.

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Every week, hosts Joe Weisenthal and Tracy Alloway take you on a not-so-random walk through hot topics in markets, finance and economics.

When we think of computer-driven or “quant” investing, we often think of fast moves and algorithms making buy and sell orders at incredibly short timeframes. So in theory, the likes of great long-term investors, like Warren Buffett, should be safe from the robot revolution. But maybe not so fast!

On this week’s Odd Lots podcast, we speak to John Alberg of Euclidean Technologies and Zachary Lipton of Carnegie Mellon, about their new research on the next generation of quant investing. Alberg and Lipton explain a recent paper in which they used machine learning to forecast the future fundamentals of companies, and the opportunity that offers in terms of beating the market over the long term.


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