Jul

19

Spencer GreenbergThe grandson of Hank Greenberg was on CNBC this morning to briefly discuss his machine learning-based hedge fund. He appeared to be a very serious young man (no smiling) and it was interesting to hear that his AI system selects stocks tohold for months and years not microseconds. Sort of counter to what is heard with about algo trading.

I believe Grandpa, however, thought that getting on base was more important than hitting home runs…his baseball career was unfortunately shortened by WWII. Here is how Spencer Greenberg, the slugger's grandson, would describe quant trading to a 5-yr old. (elevator routing a complex problem).

Maybe these "rebellious" youngsters just out of school or still in it will do fairly well in the current environment.

A provocative quote:

"It's pretty clear that humans aren't improving. But computers and algorithms are only getting faster and more robust." - Spencer Greenberg

More on the math-focused, brave new world "toddlers".

Victor Niederhoffer comments:

Yes. The son ruined my squash career with his terrible tennis follow through.

Pitt T. Maner III writes:

Sorry to bring up bad memories. The son seems to be a fairly successful value investor. A yellow pad and pencil sort of grind it out guy. Bad knees and connective tissues evidently from bygone days playing DT with Calvin Hill while studying English at Yale.

Here is a 2010 lecture (using high speed) shows him lecturing at Columbia.Glenn Greenberg of Brave Warrior Advisors, and formerly of Chieftain Capital Management, recently gave a lecture for Bruce Greenwald’s class at Columbia University. Highlights include:

* Asks two questions: 1) Is it a good business? and 2) Is it cheap?

* Marketing is a waste of time for money managers.
* Making an investment is just like making a bet.
* Has a 15% hurdle rate–as low as 13% if not many opportunities.
* Looks at returns in terms of free cash flow yields plus reasonable growth
rates.

 


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