Key Takeaways
- • Benjamin Roy, who joined Paris-headquartered quantitative manager Capital Fund Management (CFM) as chief technology officer in October 2022, says alternative data was an important source of alpha for the firm in 2023, helping portfolio managers anticipate economic movements and reposition market exposure.
- • Roy says CFM has accelerated its technology transformation over the past five months, with priorities centered on a closer partnership with research teams, a roadmap for growth, and expansion of cloud and alternative data capabilities.
- • Roy argues that testing AI models such as ChatGPT in a firm's own investment process is difficult, and that CFM relies on a scientific culture to determine whether results are meaningful or noise.
- • Roy says the boundaries between engineering, technology, and research are blurring, with data engineers needing to work closely with researchers, and that CFM is recruiting more AI and machine learning talent while adapting technical tests to account for ChatGPT use.
- • Roy cites growing hedge fund activity and senior hiring in Paris, while noting that London remains Europe's main hub for tech talent in hedge funds and capital markets.
Summary
In an interview with Hedgeweek ahead of the European Hedge Fund Leadership Summit, Benjamin Roy, chief technology officer at Capital Fund Management (CFM), discussed his first ten months at the Paris-headquartered quantitative investment manager, which he joined in October 2022. Roy, who previously led global markets technology and operations Americas at Société Générale, said his initial priorities were understanding CFM's business and culture, building a partnership with the research teams, and assessing the firm's technical information system and technology practices in order to define a growth roadmap.
Roy said the transformation began about five months ago and had accelerated, particularly in alternative data and cloud. He described alternative data as an important source of alpha for CFM in 2023, helping portfolio managers anticipate economic movements and recast market exposure during a challenging period. A central challenge, he said, is qualifying new datasets quickly and efficiently, which the firm addresses with established testing protocols and technology.
On artificial intelligence, Roy said CFM is testing tools such as ChatGPT and other natural language models, which are helping the firm process alternative and big datasets. He said the pace of innovation is accelerating, particularly with open-source models, but that moving from proof of concept to daily production use remains difficult. He credited CFM's scientific culture with assessing whether results are meaningful. Roy also said the distinction between engineering, technology, and research is narrowing, with data engineers needing close work with researchers. Hedgeweek's own surveys were cited for context: 40% of hedge fund firms reported using AI to improve returns in February 2023, and an August 2023 survey found 38% using AI, including 15% for autonomous trading and 27% to assist research.
On recruitment, Roy said CFM is hiring more AI and machine learning specialists and has adapted technical tests because candidates may use ChatGPT-style tools, shifting assessment toward live discussion of candidates' thought processes. Comparing European hubs, Roy said London remains the main hub for hedge fund technology talent, while Paris has a strong pool of engineers with scientific backgrounds, an uptick in senior hedge fund and capital markets roles, and growing competition for talent.
Roy said the transformation began about five months ago and had accelerated, particularly in alternative data and cloud. He described alternative data as an important source of alpha for CFM in 2023, helping portfolio managers anticipate economic movements and recast market exposure during a challenging period. A central challenge, he said, is qualifying new datasets quickly and efficiently, which the firm addresses with established testing protocols and technology.
On artificial intelligence, Roy said CFM is testing tools such as ChatGPT and other natural language models, which are helping the firm process alternative and big datasets. He said the pace of innovation is accelerating, particularly with open-source models, but that moving from proof of concept to daily production use remains difficult. He credited CFM's scientific culture with assessing whether results are meaningful. Roy also said the distinction between engineering, technology, and research is narrowing, with data engineers needing close work with researchers. Hedgeweek's own surveys were cited for context: 40% of hedge fund firms reported using AI to improve returns in February 2023, and an August 2023 survey found 38% using AI, including 15% for autonomous trading and 27% to assist research.
On recruitment, Roy said CFM is hiring more AI and machine learning specialists and has adapted technical tests because candidates may use ChatGPT-style tools, shifting assessment toward live discussion of candidates' thought processes. Comparing European hubs, Roy said London remains the main hub for hedge fund technology talent, while Paris has a strong pool of engineers with scientific backgrounds, an uptick in senior hedge fund and capital markets roles, and growing competition for talent.
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