Conversations with Frank Fabozzi, CFA, Featuring Iro Tasitsiomi, PhD

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In this conversation with Frank Fabozzi, CFA, Tasitsiomi explains that sophisticated models add value only when paired with well-defined problems and high-quality data. Echoing Einstein, she argues that models should be made as simple as possible, but not simpler. She also shares when advanced machine learning techniques are most effective, particularly for capturing nonlinear relationships, working with unstructured data, or enabling unsupervised discovery.

Key Discussion Points

  • Principle of parsimony: When the simplest model preserves essential insights and helps avoid unnecessary complexity, cost, and risk.
  • Poke the model: Why probing model behavior, especially outside normal conditions, helps investment teams understand potential risks and failure modes.
  • Understand the tools: Why sound judgment about data, assumptions, and model limitations matters more than coding skills, especially for younger analysts building credibility on AI-enabled investment teams.
  • Speak the language: Why successful AI adoption requires both technical rigor and clear communication across investment teams.

See  all episodes 

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