Could an ensemble of Deep Reinforcement Learning "portfolio managers" outperform your entire investment committee?

Angelo Calvello, host of Against Consensus, is joined by Sebastian "Seb" Owen, co-founder and CEO of Alpha Circle AI. Seb argues markets aren't a prediction problem; they're a capital allocation problem under uncertainty, which is why his team of non-finance AI engineers chose deep reinforcement learning over LLMs. They discuss Alpha Circle's two-layer DRL architecture, currently running a US large-cap strategy, and debate whether "tech firm" and "investment firm" are still meaningfully different categories.

Sebastian Owen is a financial markets veteran with experience across New York, London, and Amsterdam, and an AI entrepreneur focused on machine-native capital allocation. He is the co-founder and CEO of Alpha Circle AI, deploying deep reinforcement learning systems that learn how to allocate capital under risk, rather than relying on static portfolio construction. Previously, he founded HIPSTO, a deep learning platform for large-scale text knowledge discovery. His work focuses on how AI is shifting investment management from human-defined processes to adaptive, learning-based systems.

In This Episode:
(00:00) Introduction of guest Seb Owen, co-founder of Alpha Circle AI
(03:21) Why Seb Owen built Alpha Circle instead of a legacy spinout
(07:26) Choosing deep reinforcement learning over large language models
(12:25) Explaining deep reinforcement learning through cats in Manhattan
(17:12) Assembling an engineering team of non-finance scientists in Kharkiv
(20:55) Inside the two-layer swing set and DRL allocator system
(29:23) Track record, retraining cadence, and built-in safeguards
(33:23) Scaling the model across asset classes and geographies
(35:36) Turnkey AI lab versus a single AI-native hedge fund
(41:02) Is Alpha Circle a tech firm or an investment firm?
(45:00) Closing thoughts: capital allocation is becoming AI

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Dr. Angelo Calvello is a serial innovator and co-founder of multiple investment firms, including Rosetta Analytics and Blue Diamond Asset Management. He leverages his extensive professional network and reputation for authentic thought leadership to curate conversations with genuinely innovative allocators and thinkers.

As the "Dissident" columnist for Institutional Investor and former "Doctor Is In" columnist for Chief Investment Officer (winner of the 2016 Jesse H. Neal Award), Calvello has become a leading voice challenging conventional investment wisdom.

Beyond his professional pursuits, Calvello serves as Chairman of the Maryland State Retirement and Pension System's Climate Advisory Panel, Chairman of the Board of Outreach with Lacrosse and Schools (OWLS Lacrosse), a nonprofit organization creating opportunities for at-risk youths in Chicago, and trustee for a Chicago-area police pension fund. His career-long focus on leveraging innovation to deliver superior client outcomes makes him the ideal host for cutting-edge institutional investing conversations.

Resources:
LinkedIn (Seb Owen): linkedin.com/in/sebowen/
Alpha Circle AI: alphacircle.ai
LinkedIn: https://www.linkedin.com/in/sebowen/
Alphacircle AI website: https://alphacircle.ai/
Alpha Circle AI’s manifesto: https://alphacircle-manifesto.alphagrail.ai/
Website: https://againstconsensus.com
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