Manny Roman

Manny Roman, CEO of $1.7 trillion PIMCO, doesn’t expect every technology project to go well – in fact, some of them will “miserably fail,” he said at a recent financial conference.
PIMCO is experimenting with machine learning, among other technology initiatives. The firm’s found some things that work – mortgage models based on machine learning, for example – and some that don’t, such as predicting metrics like the Consumer Price Index that aren’t money makers.
“You’ve got to be able to do things differently,” Roman said.
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Even $1.7 trillion PIMCO is finding the limits of technology, including buzzy artificial intelligence.

The asset manager’s CEO, Manny Roman, said the firm undertakes research and development with the expectation that some projects just won’t work.

“I’ve got to be totally honest — some of the things we’ll try are going to miserably fail. And that’s OK,” Roman said at last week’s Morningstar Investment Conference in Chicago.

See more: PIMCO’s CEO highlights 4 tech areas he’s boosting and what keeps him up at night

PIMCO has long focused on data science. Earlier this month, the firm’s chief technology officer told Business Insider how he’s overseeing the construction of a central data platform to enable every employee to become a “citizen data scientist.”

PIMCO’s also seeking new ways to add alpha by using big data techniques, finding success for certain uses, like sorting mortgages via machine learning, Roman said.

In other cases, the firm’s trying both human and machine learning efforts to shape data. For example, when trying to predict how the Federal Reserve will change interest rates, PIMCO consults global advisory board member and former Fed chairman Ben Bernanke, and just last week brought in Janet Yellen.

“We discuss what the Fed may …read more

Source:: Business Insider

      

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