Managing 1000 Crores AUM | Quant-Investing in India ft. Wright Research | Ep11: The India Opportunity Podcast
Trailblazer of quant-investing in India, Sonam Srivastava who is building Wright Research, a Quant-Investing focused advisory and investment firm
Hello everyone, welcome to The India Opportunity Podcast where you get a front row seat to people building India’s future. We talk about unlocking the potential of the country with founders, investors, creators and successful leaders from different fields to bring to you real life stories and behind-the-scenes of what it takes to be at the forefront of building the India Story.
11th episode of The India Opportunity Podcast is out now! You can watch it on Youtube or tune in on Spotify or Apple Podcasts.
Sonam, a trailblazer in the field of quant investing, shares her journey and insights from building Wright Research, an investment firm with 50,000+ investors and 1000 Crores AUM. She started as a chemical engineer but switched to technology and finance due to her interest in data-driven approaches. Sonam started her own investment firm after facing setbacks in her career and has found success in momentum investing. She emphasizes the importance of risk management in quant investing and debunks the myth that it is high risk. Sonam discusses the growth potential of quant investing in India and the need for more adoption. She also talks about building trust as a portfolio manager and the balance between automated trading, human oversight, and risk management. Prior to founding Wright, Sonam has a decade long experience of asset management across HSBC and Edelweiss. She also is a Faculty Member at the Artificial Intelligence Finance Institute based out of New York. An IIT Kanpur graduate, Sonam is one of the few women at the helm of managing an investment firm and using quantitative strategies to help investors create wealth.
Takeaways
Quant investing is a data-driven approach that uses statistical analysis and mathematical models to make investment decisions.
Risk management is a critical aspect of quant investing and can help minimize risk and maximize returns.
Momentum investing has been successful for Sonam's firm, and she emphasizes the importance of validating strategies and considering other factors in the market.
Quant investing has a lower risk perception than commonly believed, and transparency and risk management are key to building trust with investors.
There is a significant growth potential for quant investing in India, with a need for more adoption and education.
Building trust as a portfolio manager involves performance, risk management, client relationships, and transparency.
Automated trading in quant investing should be balanced with human oversight and risk management to avoid potential backfiring.
The market cycle and opportunities in quant investing are influenced by factors such as global rate cuts, geopolitical risks, and industry growth.
Quant investing has evolved with advancements in AI, but there is still a need for more specialized models tailored to the financial services industry. Quantitative investing involves extensive risk checks and can be a low-risk value addition to a portfolio.
Staying ahead of the market requires watching data points and finding longer-term opportunities.
Active investing involves actively shifting portfolio allocation based on market changes.
Long-term compounding is ideal, but capturing trends and maximizing performance is also important.
The rise of retail participation in India presents opportunities for wealth management platforms.
ESG factors can enhance performance and contribute to a more sustainable market.
Entrepreneurship in finance comes with challenges and teaches valuable lessons.
The future of the financial industry includes evolving markets, AI, and blockchain.
Valuations and profitability are important considerations in investing in new age tech stocks.
Risk management and predicting market trends can lead to successful investment strategies.
Building trust and providing value to investors is a key goal for Wright Research.
Personal goals include improving stress management and mental health.
Timestamps:
00:00 The Journey of a Trailblazer in Quant Investing
09:02 The Importance of Risk Management in Quant Investing
11:10 Success in Momentum Investing
15:43 Debunking the Myth of High Risk in Quant Investing
22:46 Balancing Automated Trading, Human Oversight, and Risk Management
27:07 Understanding the Market Cycle in Quant Investing
31:36 The Role of Quantitative Investing and Risk Management
38:40 The Rise of Retail Participation and Future Trends in the Financial Industry
44:30 ESG Factors in Quant Strategies and the Importance of Profitability
52:39 Building Trust and Providing Value to Investors
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Disclaimer: The content presented in this podcast is for informational purposes only and should not be considered financial advice. Viewers are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions.