{"podcast":{"title":"Monetary Matters with Jack Farley","slug":"monetary-matters-with-jack-farley-7021905","podcast_index_feed_id":7021905,"rss_url":"https://feeds.megaphone.fm/EWWMN1909747317","website_url":null,"image_url":"https://megaphone.imgix.net/podcasts/ae922b50-71cc-11ef-b70f-ff42e3c63187/image/9e263a75ee53770c25c08c2adce3f11e.png?ixlib=rails-4.3.1&max-w=3000&max-h=3000&fit=crop&auto=format,compress","author":"Jack Farley","episode_count":281,"summary":"Jack Farley interviews the very best financial minds about macro, markets, and monetary matters. Follow Jack on Twitter @JackFarley96.","last_synced_at":"2026-07-17T02:18:42.948088+00:00","page_url":"https://stenobird.com/podcast/monetary-matters-with-jack-farley-7021905"},"episode":{"title":"Why Generative AI Still Can’t Trade | David Wright on How Quant Alpha Actually Is Done With Machine Learning, Decision Trees, and Gradient Boosting","slug":"why-generative-ai-still-can-t-trade-david-wright-on-how-quant-alpha-actually-is-done-with-machine-learning-decision-trees-and-gradient-boosting","published_at":"2026-05-10T14:00:00+00:00","page_url":"https://stenobird.com/podcast/monetary-matters-with-jack-farley-7021905/why-generative-ai-still-can-t-trade-david-wright-on-how-quant-alpha-actually-is-done-with-machine-learning-decision-trees-and-gradient-boosting","show_page_url":"https://stenobird.com/podcast/monetary-matters-with-jack-farley-7021905","url":"https://traffic.megaphone.fm/EWWMN6349376755.mp3","audio_url":"https://traffic.megaphone.fm/EWWMN6349376755.mp3","summary":"To learn more about Pictet AI Enhanced US Equity ETF ($PQUS), click here: https://etf.am.pictet.com/pqus/ This interview is brought to you by Pictet Asset Management. To learn more about Pictet AI-Enhanced International Equity ETF ($PQNT), click here: https://etf.am.pictet.com/pqnt/ Jack Farley sits down with David Wright, co-head of Quantitative Investments at Pictet Asset Management, to discuss the machine learning techniques his team uses in their $30 billion quant franchise, and the degree to which AI has impacted serious quantitative investing. Wright explains why he prefers to utilize many decision trees and use gradient boosting rather than Generative AI to generate return forecasts, citing the need to avoid \"hallucinations\" and ensure models remain interpretable. The conversation explores their sophisticated investment process, which analyzes over 400 features, including accounting data, market trends, and analyst sentiment, to predict relative stock performance over 20-day horizons. These strategies, which now are included in new ETFs $PQNT (Pictet AI Enhanced International Equity ETF) and $PQUS (Pictet AI Enhanced US Equity ETF) are designed as \"passive replacements,\" aiming to maintain a Beta of 1.0 while aiming to deliver an additional 1–2% annual outperformance over the relevant benchmarks, S&P 500 and MSCI EAFE indices. Finally, Wright addresses the common \"black box\" misconception of quantitative finance, advocating instead for a \"crystal box\" approach that provides full transparency into the economic rationale behind every trade. Recorded April 21, 2026. For important information about the fund, please click: https://etf.am.pictet.com/” Important Information Before investing, carefully consider the fund’s investment objectives, risks, charges, and e…","meta_description":"To learn more about Pictet AI Enhanced US Equity ETF ($PQUS), click here: https://etf.am.pictet.com/pqus/ This interview is brought to you by Pictet Asset…","key_points":[],"chapters":[],"topics":[],"duration_seconds":2286,"processing_state":"not_requested","actions":[{"name":"request_transcript","method":"POST","url":"https://stenobird.com/v1/public/podcasts/monetary-matters-with-jack-farley-7021905/episodes/why-generative-ai-still-can-t-trade-david-wright-on-how-quant-alpha-actually-is-done-with-machine-learning-decision-trees-and-gradient-boosting/transcription-requests","description":"Idempotently request low-priority transcript generation for this episode."},{"name":"read_markdown","method":"GET","url":"https://stenobird.com/podcast/monetary-matters-with-jack-farley-7021905/why-generative-ai-still-can-t-trade-david-wright-on-how-quant-alpha-actually-is-done-with-machine-learning-decision-trees-and-gradient-boosting.md","description":"Read the agent-friendly Markdown representation of this episode resource."}]}}