60 seconds on data science in fund management
Ben Wicks explains how fund managers are using data science to improve their investment returns.
The fund management industry is an information industry at heart. Fund managers have to take information in, process information and derive insights from it and then place an investment which reflects that judgement.
To get an edge in fund management you need to be doing something better than the other person on the other side of the trade and that is how you find alpha.
Alpha can come from better analysis of information, better combinations of investments and risk management or it could come from better information in the first place.
This is where we think data science is very interesting, because if you bring in a very large amount of data relevant to an investment, and if you can extract insight from that information using data scientists, then there is a good chance you might find something that no other investor has discovered.
The views and opinions contained herein are those of Schroders’ investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.’s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.