Guest Speaker: May Ling Lai
- Isabella Nelson
- Mar 24
- 2 min read
This week, we had the pleasure of welcoming May Lai, who delivered an insightful session on asset management and the structure of global financial markets. Drawing on her experience across investment banking, hedge funds, and quantitative finance, she helped us better understand how capital actually flows through the system.
Understanding How Finance is Structured
May began by introducing a key distinction: the difference between asset owners and asset managers. Asset owners, such as pension funds, sovereign wealth funds, and individuals, provide the capital, while asset managers are responsible for investing it. This simple but powerful framework clarified how different institutions interact and where firms like BlackRock, Goldman Sachs, and hedge funds fit within the broader ecosystem.
She also emphasised how scale shapes investment decisions. Large institutions managing trillions of dollars cannot pursue small opportunities; instead, they must focus on large, liquid investments that can absorb significant capital. This highlighted how investing at the institutional level is not only about returns, but also about liquidity, mandates, and macroeconomic exposure.
Hedge Funds and Investment Strategies
A central part of the session focused on hedge funds and how they differ from other alternative investments. One of the most important distinctions discussed was liquidity, meaning how easily investors can withdraw their money. Hedge funds tend to offer more flexibility compared to private equity or real estate, which often involve long lock-up periods.
May then outlined several key hedge fund strategies, including equity long-short, global macro, quantitative investing, and distressed debt. Rather than presenting hedge funds as a single category, she showed how they represent a wide range of approaches to identifying opportunities and managing risk across markets.
The Role of AI in Investing
The discussion also touched on the growing role of AI and machine learning in finance. While algorithms are already highly effective in areas such as trading execution and pattern recognition, May explained that they still struggle with deeper, fundamental analysis. Interpreting company strategy, understanding context, and forming long-term investment views remain areas where human judgment is critical.
A Key Takeaway
The session ultimately highlighted that finance is not just about markets or technical knowledge, but about understanding how and why capital is allocated. For us as students, the key takeaway was clear: developing the ability to think critically about investment decisions and the structure behind them is far more valuable than simply learning specific strategies.
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