Diego Llosa Tejada

As a Simulation Design Fellow at Drexel's Stamatakis Center for Alternative Investments, I build the LBO returns engine (IRR/MOIC) for a private equity simulator developed for the Vanguard MBA program and lead AI implementation for its finance team, working with Dean Emeritus George Tsetsekos. The system generates the CIMs, teasers, financial statements, and management presentations students run diligence against. Each company carries deliberate flaws in its projections, customer base, and capital structure, so that diligence has something to find.

I am now building the macro layer: an engine that takes a shock, say a five percent rise in the minimum wage, and pushes it through every company differently depending on sector and archetype. A turnaround runs on thin margins and no slack, so that same wage increase compresses its EBITDA far harder than a steady-state company's. A healthcare platform compounds faster off the same demand shock than a consumer business does. Every sector needs its own elasticities, derived and defensible, before the following year's financials can be regenerated from them.

The Alignment Paradox is an iterated prisoner's dilemma tournament across four language models, testing whether the newer ones cooperate better than the models they replaced. They don't. The newer models defect from the first round and settle into mutual punishment, while their predecessor held cooperation to the endgame, averaging about 30 points per game against 14 to 18 for the newer models.

Presented at the 4th Annual PREDOC Conference at Chicago Booth. Posted on SSRN with the payoff matrix, model versions, and prompts published for replication.

At sixteen I co-founded a venture importing American confectionery into Arequipa, the first in the city to carry Feastables. When our Amazon account was shut down with only 64 bars delivered, I turned the shortage into a drop. Prices rose in S/5 steps from S/20 to S/40, one bar per person, and all 60 sold out in under 40 minutes. We restocked through a contact traveling from the U.S. and sold more than 160 bars in total.