(Bloomberg Opinion) -- There’s a corollary to Marc Andreessen’s argument that software is eating the world — the models will be in charge of running it.
That’s according to this week’s guest on Masters in Business, Matthew Granade, chief market intelligence officer and a managing director at Point72 Asset Management. Granade manages the firm’s central portfolio, deploying big data and artificial intelligence in systematic strategies and quantitative investing models. The guiding philosophy is that humans and machines are complementary, not alternatives.
Granade also directs and manages Point72 Ventures, which funds early-stage companies in financial technology, enterprise automation, artificial intelligence and cybersecurity. Before joining Point72 Granade worked at McKinsey & Co. and later at hedge fund Bridgewater Associates, where he was co-head of research.
He was the co-founder of the Domino Data Lab, a platform that seeks to build the system-of-record for data scientists. The quant tool enables data science teams to rapidly develop and deploy models across a diverse set of industries, including finance, agriculture, manufacturing, medicine and fast food.
Point72 is the successor to S.A.C. Capital Advisors, the hedge fund founded by billionaire Steven Cohen in 1992. The firm grew from $25 million in assets to a peak of more than $16 billion, before settling insider-trading allegations by the Securities and Exchange Commission that resulted in a temporary ban on managing outside money. The firm changed its name and became a family office. Last year it was cleared to again accept outside investors.
Granade’s favorite books are here; the transcript of our conversation is here.
To contact the editor responsible for this story: James Greiff at jgreiff@bloomberg.net
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Barry Ritholtz is a Bloomberg Opinion columnist. He founded Ritholtz Wealth Management and was chief executive and director of equity research at FusionIQ, a quantitative research firm. He is the author of “Bailout Nation.”
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