Jean-Philippe Bouchaud
Encyclopedia
Jean-Philippe Bouchaud is a French physicist
born in 1962. He is founder and Chairman of Capital Fund Management
(CFM) and professor of physics at École polytechnique
.
in 1962, Jean-Philippe Bouchaud studied at the French Lycée in London. Graduated from École Normale Supérieure
in 1985, he worked on his PhD at the Laboratory of Hertzian Spectroscopy, studying spin-polarized quantum gases with Claire Lhuillier. He then worked for the French National Center for Scientific Research, in particular on liquid Helium 3 and diffusion in random media. He spent a year at the Cavendish Laboratory
, University of Cambridge
in 1992 before joining the Laboratory of Condensed Matter Physics of the French Atomic Energy and Alternative Energies Commission (Commissariat à l'énergie atomique
or CEA) à Saclay
. Pioneer in Econophysics
, he co-founded the company Science et Finance in 1994, which later merged with Capital Fund Management
(CFM
) in 2000. He is now the Chairman of CFM. After teaching statistical mechanics for ten years at ESPCI, he was appointed as an adjunct Professor at École Polytechnique
, where he teaches a course on Complex systems. His work covers the physics of disordered and glassy systems, granular materials, the statistics of price formation, stock market fluctuations and the modelling of financial risks. He criticizes the dogma
of the efficient-market hypothesis and the methodology
of economics and mathematical finance, in particular the use of the Black–Scholes model which leads to a systematic underestimation of risk in options trading
.
Physicist
A physicist is a scientist who studies or practices physics. Physicists study a wide range of physical phenomena in many branches of physics spanning all length scales: from sub-atomic particles of which all ordinary matter is made to the behavior of the material Universe as a whole...
born in 1962. He is founder and Chairman of Capital Fund Management
Capital Fund Management
Capital Fund Management is a hedge fund management company based in Paris with offices in New York and Tokyo. Founded in 1991 by Jean-Pierre Aguilar, CFM merged in 2000 with Science & Finance the research company founded in 1994 by Jean-Philippe Bouchaud...
(CFM) and professor of physics at École polytechnique
École Polytechnique
The École Polytechnique is a state-run institution of higher education and research in Palaiseau, Essonne, France, near Paris. Polytechnique is renowned for its four year undergraduate/graduate Master's program...
.
Biography
Born in ParisParis
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
in 1962, Jean-Philippe Bouchaud studied at the French Lycée in London. Graduated from École Normale Supérieure
École Normale Supérieure
The École normale supérieure is one of the most prestigious French grandes écoles...
in 1985, he worked on his PhD at the Laboratory of Hertzian Spectroscopy, studying spin-polarized quantum gases with Claire Lhuillier. He then worked for the French National Center for Scientific Research, in particular on liquid Helium 3 and diffusion in random media. He spent a year at the Cavendish Laboratory
Cavendish Laboratory
The Cavendish Laboratory is the Department of Physics at the University of Cambridge, and is part of the university's School of Physical Sciences. It was opened in 1874 as a teaching laboratory....
, University of Cambridge
University of Cambridge
The University of Cambridge is a public research university located in Cambridge, United Kingdom. It is the second-oldest university in both the United Kingdom and the English-speaking world , and the seventh-oldest globally...
in 1992 before joining the Laboratory of Condensed Matter Physics of the French Atomic Energy and Alternative Energies Commission (Commissariat à l'énergie atomique
Commissariat à l'Énergie Atomique
The Commissariat à l'énergie atomique et aux énergies alternatives or CEA, is a French “public establishment related to industrial and commercial activities” whose mission is to develop all applications of nuclear power, both civilian and military...
or CEA) à Saclay
Saclay
Saclay is a commune in the southwestern suburbs of Paris, France. It is located from the center of Paris.It is best known for the large scientific facility CEA Saclay, mostly dealing with nuclear and particle physics....
. Pioneer in Econophysics
Econophysics
Econophysics is an interdisciplinary research field, applying theories and methods originally developed by physicists in order to solve problems in economics, usually those including uncertainty or stochastic processes and nonlinear dynamics...
, he co-founded the company Science et Finance in 1994, which later merged with Capital Fund Management
Capital Fund Management
Capital Fund Management is a hedge fund management company based in Paris with offices in New York and Tokyo. Founded in 1991 by Jean-Pierre Aguilar, CFM merged in 2000 with Science & Finance the research company founded in 1994 by Jean-Philippe Bouchaud...
(CFM
CFM
CFM is an abbreviation for cubic feet per minute which is a measure of flow for liquids and gases, like air or water. CFM may also refer to:*Calea Ferată din Moldova, the Moldovan State Railway...
) in 2000. He is now the Chairman of CFM. After teaching statistical mechanics for ten years at ESPCI, he was appointed as an adjunct Professor at École Polytechnique
École Polytechnique
The École Polytechnique is a state-run institution of higher education and research in Palaiseau, Essonne, France, near Paris. Polytechnique is renowned for its four year undergraduate/graduate Master's program...
, where he teaches a course on Complex systems. His work covers the physics of disordered and glassy systems, granular materials, the statistics of price formation, stock market fluctuations and the modelling of financial risks. He criticizes the dogma
Dogma
Dogma is the established belief or doctrine held by a religion, or a particular group or organization. It is authoritative and not to be disputed, doubted, or diverged from, by the practitioners or believers...
of the efficient-market hypothesis and the methodology
Methodology
Methodology is generally a guideline for solving a problem, with specificcomponents such as phases, tasks, methods, techniques and tools . It can be defined also as follows:...
of economics and mathematical finance, in particular the use of the Black–Scholes model which leads to a systematic underestimation of risk in options trading
Option (finance)
In finance, an option is a derivative financial instrument that specifies a contract between two parties for a future transaction on an asset at a reference price. The buyer of the option gains the right, but not the obligation, to engage in that transaction, while the seller incurs the...
.
Awards
- Prix IBMIBMInternational Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
young researcher in 1989 - Silver medal of CNRS in 1995