Jean-Philippe Bouchaud (born 1962) is a French

physicist A physicist is a scientist who specializes in the field of physics, which encompasses the interactions of matter and energy at all length and time scales in the physical universe. Physicists generally are interested in the root or ultimate cau ...

. He is co-founder and chairman of Capital Fund Management (CFM), adjunct professor at

École Normale Supérieure École may refer to: * an elementary school in the French educational stages normally followed by secondary education establishments (collège and lycée) * École (river), a tributary of the Seine flowing in région Île-de-France * École, S ...

and co-director of the CFM-Imperial Institute of Quantitative Finance at

Imperial College London Imperial College London (legally Imperial College of Science, Technology and Medicine) is a public research university in London, United Kingdom. Its history began with Prince Albert, consort of Queen Victoria, who developed his vision for a cu ...

. He is a member of the French Academy of Sciences, and held the Bettencourt Innovation Chair at

Collège de France The Collège de France (), formerly known as the ''Collège Royal'' or as the ''Collège impérial'' founded in 1530 by François I, is a higher education and research establishment ('' grand établissement'') in France. It is located in Paris n ...

in 2020.

Biography

Born in

Paris Paris () is the Capital city, capital and List of communes in France with over 20,000 inhabitants, most populous city of France, with an estimated population of 2,165,423 residents in 2019 in an area of more than 105 km² (41 sq mi), ma ...

in 1962, Jean-Philippe Bouchaud studied at the French Lycée in London. Graduating from

in 1985, he carried out 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 The French National Centre for Scientific Research (french: link=no, Centre national de la recherche scientifique, CNRS) is the French state research organisation and is the largest fundamental science agency in Europe. In 2016, it employed 31,637 ...

, in particular on liquid Helium 3 and diffusion in random media. He spent a year at the Cavendish Laboratory,

University of Cambridge The University of Cambridge is a public collegiate research university in Cambridge, England. Founded in 1209 and granted a royal charter by Henry III in 1231, Cambridge is the world's third oldest surviving university and one of its most pr ...

in 1992 before joining the Laboratory of Condensed Matter Physics (SPEC) of the French Atomic Energy and Alternative Energies Commission (

Commissariat à l'énergie atomique The French Alternative Energies and Atomic Energy Commission or CEA (French: Commissariat à l'énergie atomique et aux énergies alternatives), is a French public government-funded research organisation in the areas of energy, defense and securit ...

or CEA) à

Saclay Saclay () is a commune in the southwestern suburbs of Paris, France. It is located from the centre of Paris. It had a population of 3,067 in 2006. It is best known for the large scientific facility CEA Saclay, mostly dealing with nuclear and pa ...

. Pioneer in

econophysics Econophysics is a heterodox 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 dynam ...

, 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 ESPCI Paris (officially the École supérieure de physique et de chimie industrielles de la Ville de Paris; ''The City of Paris Industrial Physics and Chemistry Higher Educational Institution'') is a prestigious grande école founded in 1882 by ...

, he was appointed in 2009 as an adjunct Professor at

École Polytechnique École may refer to: * an elementary school in the French educational stages normally followed by secondary education establishments (collège and lycée) * École (river), a tributary of the Seine flowing in région Île-de-France * École, Savoi ...

,. He now teaches a course ''From Statistical Mechanics to Social Sciences'' at

and, for a year, at

. 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 has repeatedly criticized the

dogma Dogma is a belief or set of beliefs that is accepted by the members of a group without being questioned or doubted. It may be in the form of an official system of principles or doctrines of a religion, such as Roman Catholicism, Judaism, Isla ...

of the

efficient-market hypothesis The efficient-market hypothesis (EMH) is a hypothesis in financial economics that states that asset prices reflect all available information. A direct implication is that it is impossible to "beat the market" consistently on a risk-adjusted bas ...

and the

methodology In its most common sense, methodology is the study of research methods. However, the term can also refer to the methods themselves or to the philosophical discussion of associated background assumptions. A method is a structured procedure for br ...

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 In finance, an option is a contract which conveys to its owner, the ''holder'', the right, but not the obligation, to buy or sell a specific quantity of an underlying asset or instrument at a specified strike price on or before a specified dat ...

Awards

* IBM Young Researcher Prize in 1989 *

CNRS Silver Medal The CNRS Silver Medal is a scientific award given every year to about fifteen researchers by the French National Centre for Scientific Research The French National Centre for Scientific Research (french: link=no, Centre national de la recherch ...

in 1995 * ''

Risk In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty about the effects/implications of an activity with respect to something that humans value (such as health, well-being, wealth, property or the environm ...

'' Quant of the Year in 2017 * Elected as member of the French Academy of Sciences in 2017.

Bibliography

* Anomalous diffusion in disordered media: Statistical mechanisms, models and physical application, Jean-Philippe Bouchaud, Antoine Georges, Physics Reports, Volume 195, Issues 4–5, November 1990, Pages 127-293 * Lévy Statistics and Laser Cooling: How Rare Events Bring Atoms to Rest by François Bardou, Jean-Philippe Bouchaud, Alain Aspect and Claude Cohen-Tannoudji (Cambridge University Press, 2002) * Theory of Financial Risk and Derivative Pricing, J-P Bouchaud, M. Potters (Cambridge University Press, 2003) * Complex Systems, Volume LXXXV: Lecture Notes of the Les Houches Summer School 2006 by Jean-Philippe Bouchaud, Marc Mézard and Jean Dalibard (Elsevier Science, 2007)
Economics needs a scientific revolution
Jean-Philippe Bouchaud, Nature, 455, 1191 (2008), available her

* The (unfortunate) complexity of the economy, J.-P. Bouchaud, Physics World, 22(04), 28 (2009)
How markets slowly digest changes in supply and demand
JP Bouchaud, JD Farmer, F. Lillo in Handbook of financial markets: dynamics and evolution by Thorsten Hens,Klaus Reiner Schenk-Hoppé (North Holland, 2009) * Endogenous Dynamics of Markets: Price Impact, Feedback Loops and Instabilities, in Lessons from the Financial Crisis Edited By Arthur M. Berd (Risk Books 2010) * Dynamical Heterogeneities in Glasses, Colloids, and Granular Media (International Series of Monographs on Physics) by Ludovic Berthier, Giulio Biroli, Jean-Philippe Bouchaud and Luca Cipelletti (Oxford University Press, 2011) * Financial applications of random matrix theory: a short review, Jean-Philippe Bouchaud, Marc Potters, in The Oxford Handbook of Random Matrix Theory Edited by Gernot Akemann, Jinho Baik, and Philippe Di Francesco (Oxford University Press, 2011) * Crises and Collective Socio-Economic Phenomena: Simple Models and Challenges, Jean-Philippe Bouchaud, Journal of Statistical Physics, 151, Issue 3–4, pp 567–606, 2013. * Tipping points in macroeconomic Agent-Based models, Stanislao Gualdi, Marco Tarzia, Francesco Zamponi, Jean-Philippe Bouchaud, Journal of Economic Dynamics & Control 50, 29-61 (2015) * Instabilities in large economies: aggregate volatility without idiosyncratic shocks, Julius Bonart, Jean-Philippe Bouchaud, Augustin Landier, David Thesmar, J. Stat. Mech. (2014) P10040 * Cleaning large correlation matrices: tools from random matrix theory, Joel Bun, Jean-Philippe Bouchaud, Marc Potters, Physics Reports, 666, 1-109 (2017). * Trades, Quotes and Prices, Jean-Philippe Bouchaud, Julius Bonart, Jonathan Donier, Martin Gould, Cambridge University Press (2018). * A First Course in Random Matrix Theory: For Physicists, Engineers and Data Scientists, Marc Potters and Jean-Philippe Bouchaud, Cambridge University Press (2021).

Footnotes

{{DEFAULTSORT:Bouchaud, Jean-Philippe 1962 births Living people École Normale Supérieure alumni French physicists Research directors of the French National Centre for Scientific Research