Macro Hive Conversations With Bilal Hafeez Ep. 312: Deepak Gurnani on Five Steps for Using AI in Investing
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Jun 12, 2025 Deepak Gurnani, Founder and Managing Partner of Versor Investments and former CIO of Investcorp, shares insights on integrating AI into investment strategies. He highlights the critical first steps of data curation and feature engineering, noting common errors in data handling. Gurnani contrasts conventional with alternative data and discusses challenges in machine learning transparency. He also shares innovative AI-driven trading strategies and emphasizes the importance of human expertise alongside technology in investment decision-making.
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Ensemble Modeling Approach
- Use an ensemble of linear models, decision trees, and neural nets rather than relying on a single modeling approach. - Different models perform better under different problems; combining them improves robustness.
Reducing AI Model Opacity
- Frame problems with clear hypotheses and select data with causal links to those hypotheses before model training. - This process helps interpret AI outputs and diagnose strategy issues during underperformance.
Beware Data Dumping in AI Research
- Many research papers indiscriminately throw data at AI models, leading to overfitting and poor real-world outcomes. - A disciplined approach with hypothesis-driven data selection reduces overfitting and false patterns.
