GMO Conference | November 01, 2022

Technology Innovation to Generate Alpha

New Tools, Better Investment Outcomes

At GMO, we recognize that innovation is the key to effectively adding alpha, and we place particular emphasis on technological innovation.

Since the early 1980s, GMO has developed quantitative models that aim to systematize our fundamental insights about the important drivers of valuation. Today, some of our most important research efforts go into developing next-generation technology to improve our clients’ investment outcomes.

Explore our content below and Contact Us or your GMO representative for more information. Intended for accredited investors.

Minimizing Shortfall: Deep Risk vs. Shallow Risk

Risk is commonly defined as "volatility," but we believe it is more aptly defined as "not having what you need, when you need it." Matt Kadnar and Martin Tarlie explained this alternative risk framework and how it differs from more traditional measures of risk. GMO's new Needs-Based Allocation platform, “Nebo,” allows financial advisors to build portfolios that minimize this risk.

Learn more about Nebo.

The Evolution of Alpha Insights and the Use of Natural Language Processing

Natural Language Processing (NLP) is a particularly promising area on GMO’s ongoing research agenda. Prasun Agarwal and Serginio Sylvain, researchers on our Systematic Equity team, shared how we have built GMO's NLP infrastructure and how it provides the flexibility to develop a suite of differentiated alpha models.

GMO Presenters


Prasun Agarwal

Dr. Agarwal is a quantitative analyst for GMO’s Systematic Equity team. Prior to joining GMO in 2009, Dr. Agarwal was a quantitative trading researcher for Numeric Investors, LLC. Previously, he was a senior consultant for CBIZ Valuation Group, Incorporated. Dr. Agarwal received his bachelor's degree in Mechanical Engineering from The Indian Institute of Technology, his MBA in Finance and Accounting from Southern Methodist University, as well as his PhD in Finance from Cornell University. He is a CFA charterholder.


Matt Kadnar

Mr. Kadnar is a member of GMO’s Asset Allocation team and a partner of the firm. Prior to joining GMO in 2004, he was an investment specialist and consultant relations manager at Putnam Investments. Previously, he served as in-house counsel for LPL Financial Services and as a senior associate at Melick & Porter, LLP. Mr. Kadnar earned his bachelor's degree from Boston College majoring in Finance and Philosophy and a JD from St. Louis University School of Law. He is a CFA charterholder.


Serginio Sylvain

Dr. Sylvain is a quantitative analyst for GMO’s Systematic Equity team and a partner of the firm. Prior to joining GMO in 2015, Dr. Sylvain was a research associate at BlackRock for their multi-asset strategies. Previously, he was an investment associate at Putnam Investments in their Global Asset Allocation group. Dr. Sylvain received his bachelor's degree in Mathematics and Economics from the Massachusetts Institute of Technology and his master's degree and PhD in Economics from the University of Chicago.


Martin Tarlie

Dr. Tarlie is a member of GMO’s Asset Allocation team and the Head of NEBO. Prior to re-joining GMO in 2018, he was a managing director at QMA. He previously worked on GMO’s Global Equity team from 2007 to 2014. Prior to that he worked at Breakwater Trading and at Marlin Capital Corp as a fundamental equity analyst and the director of research. Dr. Tarlie earned his bachelor's degree in physics from the University of Michigan, his PhD in theoretical condensed matter physics from the University of Illinois at Urbana-Champaign, and his MBA from the University of Chicago. He was also a postdoctoral research fellow at the James Franck Institute at the University of Chicago and is a CFA charterholder.

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