BLOG INSIGHTS AND ANALYSIS

On February 7th, our CIO, Ashar Mahboob, participated in the CMU MSCF Finance Advisory Board Meeting, contributing to the program’s growth and expanding resources for prospective students.

His dedication to the board was recognized, particularly for the integration of Quantbot mentors and the Code Willing Platform, both of which have significantly enhanced classroom experiences and Datathon competitions.

A key discussion point was the impact of the CodeWilling platform and Data Store on student learning. The platform is seamlessly integrated into coursework, offering an engaging experience, while the Data Store provides invaluable real-world data, equipping students with essential tools for success.

Additionally, the conversation highlighted the need for expanding data availability. Professor Chad Schaffer, a strong advocate for the CodeWilling platform, emphasized the importance of increasing datasets within the CMU Data Store to further enrich student learning.

Ashar’s participation underscores our commitment to fostering innovation in finance education, ensuring students have access to cutting-edge tools and industry-relevant resources.

We’re excited to see how this program continues to evolve, bringing even more opportunities for students to engage with real-world data, industry mentors, and innovative technology.

On January 28th, Paul White, Our CEO and Co-founder, took the stage once again- this time on a more comfortable Miami day to join Ryan Tolkin, CEO and CIO of Schonfeld at the iConnections MFA Conference fireside chat. Together, they shared insights on the evolution of our nearly two decade-long successful partnership. The conversation centered on key factors that have driven their success. 

During the discussion, Paul outlined his philosophy for building a thriving quant business, encapsulated in what he calls the “3 Ps.” These foundational pillars- People, Platform, and Partners- have been instrumental in Quantbot’s success. 

The first P is People, clearly important to any business but even more so with the Intellectual Property heavy quant business. At Quantbot we pride ourselves on having an environment where people can grow their careers within the firm, moving between areas and specialities whilst progressing and adding value to overall performance. The difference between keeping a team together for a few years versus 5, 10 and in our case sometimes 25+ is measured on a logarithmic scale. 

P 2 is Platform, this is the technology, data, tools and the business process capabilities needed to take ideas from the whiteboard through development, research, simulation and ultimately to live trading. All done at scale, globally without errors. 

Finally, the last P is Partners as in order to get the maximum results from the first two Ps you will need to find the right partners to provide capital, back office, legal/compliance, financing, PB and execution services. Here Schonfeld has been an excellent partner in helping Quantbot focus on the alpha research side of building a successful business globally while Schonfeld helps secure the right external relationships for non IP functions. The other core partner for Quantbot is Code Willing who now handle the majority of Quantbot’s critical quant technology platform allowing the firm’s people to focus on alpha research. 

Paul concludes that when you get all three Ps right- People, Platform, and Partners- you meet the minimum required for operating a successful quant business. Once that foundation is set, you should be able to run every day and now you can focus on finding the quant IP needed to generate real alpha and that’s where the real fun begins.

On January 22nd, Paul White, our CEO and Co-founder, took the stage in an unusually chilly Miami to discuss emerging trends in alternative data for 2025. The panel engaged in a lively debate on using data for macroeconomic analysis and the growing role of LLMs and AI within buy-side investment firms. 

The key takeaway? That’s easy: we all need more data. However, a crucial undertone emerged- the trading community requires easier access to trial data and a more streamlined process for acquiring proven datasets. This is both an industry and cultural challenge that delays time to market, negatively impacting both buy-side firms and data vendors. 

Quantbot refers to this challenge as “R.O.D” Return on Data. If it takes six months or more to obtain trial data, we often see a negative impact on its value, reducing the likelihood of purchasing it for long-term use. 

Despite these industry hurdles, Quantbot values events like this as great opportunities to connect with peers, discover new providers, and engage with existing ones. Alternative data means different things to different firms, but our stance remains firm: everyone will need to consume significantly more datasets to stay competitive, whether they are alternative or traditional. 

This growing demand will require firms to ingest, process, cleanse, and map far larger volumes of data. The big question is which companies will handle this challenge without massively increasing bottom-line costs. 

Last Saturday, Quantbot was a proud sponsor of MSCF’s 2024 Trading Competition, which was hosted by CMU’s MSCF Women in Quant Finance and Smart Women Securities. The one-day competition at Carnegie Mellon University brought together over 150 talented students from their MSCF program as well as CMU’s undergraduate programs to showcase their quantitative and trading skills. Inspired by the Rotman Trading Competition in Toronto, the event expanded access to market simulation games and offered exclusive networking opportunities with the sponsors, including Quantbot. 

As sponsors, Quantbot researchers and representatives were able to network throughout the day-long competition. We had a chance to meet with students across both Masters and Undergrad programs and observe firsthand the dedication and hard work the MSCF Program Office puts into their students. As always we are very appreciative of the chance to participate in MSCF events, and we look forward to sponsoring again in future! 

Quantbot table of merch is ready for networking

Zihao, Quantbot researcher, introduces Quantbot to the competition participants

On August 19th, Quantbot was featured in an article by Carnegie Mellon University. The spotlight was on our participation in a datathon event that happened in April and its impact on the students. At this event, our employees got the opportunity to collaborate with current CMU students.

The Carnegie Mellon article highlighted our team’s dedication and ingenuity throughout the event as well as highlighted our sister company, Codewilling. It was a whirlwind of brainstorming, coding, and strategizing, culminating in a presentation. The experience showcased our commitment to leveraging data for impactful solutions and our collaborative spirit.

Looking ahead, we’re incredibly excited about the prospect of continuing our partnership with Carnegie Mellon and working with their students. Their reputation for excellence and innovation aligns perfectly with our own values, and we’re eager to explore more opportunities in the future.

A huge thank you to Carnegie Mellon for the feature and for the opportunity to collaborate on this event. Quantbot can’t wait for future experiences and successes in the future!

Click the link to view the full article: https://www.cmu.edu/mscf/news/2024/2024-datathon-competition.html