Quant, AI to Play Bigger Role in Investing: Sonam Srivastava

Sonam Srivastava, Founder of Wright Research, started her firm six years ago, when she discovered that India isn't into quant investing.

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With her experience in foreign stock markets, she wanted to fill the gap in the industry. Wright Research has now crossed Rs 100 crore in AUM. Speaking on the Simple Hai! show, Srivastava emphasizes the power of quant and AI in analysing vast data, improving investment decision-making, and democratising sophisticated portfolio management for diverse investors.

Sonam Srivastava's journey into entrepreneurship was partly catalyzed by working in foreign markets and the shutdown of a startup she had joined after the 2018 tariffs imposed by US President Donald Trump. Drawing on her decade-long industry experience, she launched her own venture in 2019.

The firm's growth coincided with the bull market that began in 2020 . Wright Research's quantitative, momentum-based strategies performed exceptionally well during this period and effectively managed risk, which helped it build a loyal following.

Al vs. Quant: Training Models on Financial Data

Srivastava clarified the distinction between general AI and its application in finance, during her conversation with host Vivek Law. Popular models like ChatGPT (LLMs) are primarily text generation models. Financial models, however, must be trained specifically on market data. It is critical to teach these models complex concepts such as risk, return, and advanced financial techniques.

Srivastava's interest in AI developed early on. Her journey involved writing blogs that attracted foreign connections, leading her to collaborate on research papers and work with various institutions.