LLMs as Quant Tools

How can investors best apply the available array of Large Language Models (LLM) in quantitative strategy development? In his December 2024 paper entitled “The LLM Quant Revolution: From ChatGPT to Wall Street”, William Mann summarizes the use of LLMs in quantitative finance, focusing on: the current state of LLM technology in financial applications; comparison of leading models; implementation frameworks for production systems and risk management; and, quality control considerations. He reports results of a comprehensive review of the best LLM to use for each of seven phases of investment strategy development. Based on the body of research on use of LLMs in finance and this comprehensive review, he concludes that: (more…)