I’m excited to share the first episode of Calculated Conversations, where I interview professionals across finance, mathematics, and personal development. To kick things off, I had the pleasure of speaking with Professor Mesias Alfeus, Associate Professor at Stellenbosch University, whose research in quantitative finance, computational methods, and empirical finance has made a significant impact in the field.
Here’s what he had to say:
1. Journey into Quantitative Finance
What initially sparked your interest in this field, and how did your academic journey shape your current role as an Associate Professor?
“My interest in Quantitative Finance was sparked during my undergraduate studies when I first encountered the intersection of mathematics, statistics, and real-world financial problems. The idea of using mathematical models to explain complex market behaviors fascinated me. This curiosity led me to pursue advanced studies, ultimately culminating in a PhD in Quantitative Finance. Throughout my academic journey, I was drawn to the balance between theoretical rigor and practical application. As an Associate Professor, I aim to bridge academic research with industry practice, guiding students and researchers to solve real-world financial challenges through robust quantitative methods.”
2. Challenges in Quantitative Finance
What are some of the biggest challenges you’ve faced in your research, and how have you overcome them?
“One of the most significant challenges in Quantitative Finance is dealing with the limitations of mathematical models in capturing real market complexities. Financial markets are influenced by countless factors, many of which are unpredictable or difficult to quantify. In computational settings, challenges like data limitations, model risk, and computational inefficiencies often arise. I’ve addressed these by adopting more flexible modeling frameworks, such as stochastic models with jumps or rough volatility models, and by leveraging high-frequency data when possible. Collaboration with industry professionals has also been crucial, ensuring that the models I develop are both theoretically sound and practically applicable.”
3. Quantitative Finance in Africa
What are some of the key opportunities and challenges for quantitative finance in Africa, and how do you see the future of this field evolving in the region?
“Africa presents both immense opportunities and unique challenges for quantitative finance. On the opportunity side, there’s a growing interest in modernizing financial systems, improving risk management practices, and expanding capital markets. Countries like South Africa and Nigeria have relatively sophisticated markets, but there’s potential for broader regional development. However, challenges include data scarcity, market illiquidity, and regulatory complexities. I see the future of quantitative finance in Africa as one of strategic growth—leveraging technology, promoting financial inclusion, and developing locally tailored risk models. Education and capacity building will play critical roles in this evolution.”
4. Practical Applications of Financial Mathematics
What would you say are the most valuable mathematical concepts or techniques for students who aspire to pursue careers in finance or risk management?
“In teaching Financial Mathematics, I emphasize the importance of understanding core concepts like stochastic calculus, time series analysis, and optimization techniques. These tools are fundamental for pricing derivatives, managing risk, and developing trading strategies. Equally important are computational skills—proficiency in programming languages like Python, R, or MATLAB enables students to implement models and analyze real-world data. I always encourage students to not just focus on the mathematical theory but also to understand the underlying financial intuition, as this makes their knowledge more adaptable in diverse professional settings.”
5. Mathematics and Industry
How do you bridge the gap between theoretical mathematical concepts and their practical applications in the finance industry? How can aspiring financial professionals better prepare themselves for the complexities of the real world?
“Bridging the gap between theoretical concepts and practical applications requires an understanding of both academic rigor and industry needs. In my work, I continuously engage with practitioners, ensuring that the models I develop address real financial challenges. This has been particularly useful in areas like risk management and asset pricing, where regulatory requirements and market conditions evolve rapidly. Aspiring financial professionals should seek internships, industry projects, and hands-on experiences that complement their academic studies. Developing strong analytical skills while staying attuned to industry trends will better prepare them for real-world complexities.”
6. Research in Quantitative Finance
Can you share some advice for aspiring researchers in quantitative finance? How important is collaboration with industry professionals in advancing research in this area?
“For aspiring researchers, my advice is to stay curious and open to interdisciplinary approaches. Quantitative finance is dynamic, blending mathematics, economics, computer science, and data analytics. Embracing this complexity can lead to innovative research. Collaboration with industry professionals is invaluable—real-world data and practical challenges often reveal research gaps that purely theoretical work might overlook. Building networks within both academic and professional circles enhances the relevance and impact of research. Moreover, perseverance is key; financial markets are complex, and meaningful insights often require time and rigorous testing.”
7. Cycling and Life Balance
How do you manage to maintain a healthy balance between work, research, and personal hobbies, and what role does that play in your overall well-being and productivity?
“Cycling has been an essential outlet for maintaining balance in my life. It offers a form of active meditation, helping me clear my mind and approach work with renewed focus. Managing the balance between research, teaching, and personal interests requires intentional planning. I dedicate specific times for exercise, family, and hobbies, treating them as integral parts of my schedule rather than afterthoughts. This balance not only improves my well-being but also enhances productivity. I believe that engaging in activities outside academia fosters creativity and resilience, which are crucial in both research and life.”
Final Thoughts
Professor Alfeus’ insights highlight the importance of blending theoretical knowledge with practical application, the evolving landscape of quantitative finance in Africa, and the value of maintaining balance between work and personal life. His journey serves as a great example for aspiring professionals in the field.
A huge thank you to Professor Mesias Alfeus for being part of this first episode of Calculated Conversations! Would love to hear your thoughts—what part of this interview resonated with you the most? Let’s discuss in the comments!