Innovative application of technology not just for giant funds say experts
A fascinating paper on applying data science to investment management was recently published in the Journal of Portfolio Management.
‘’Improving Investment Operations through Data Science: A Case Study of Innovation in Valuation,’’ by Dr Arthur Guimaraes, Dr Ashby Monk and Dr Sidney Porter looked at how applying data science techniques and technology improved the operational efficiency of the University of California Investments office.
The authors state that ‘’. . . we believe that new technologies in data science will allow long-term investors to bring much more rigor to their operations, which would be universally positive for the community of asset owner investors.’’
This echoes what we see in the AlphaCert customer base, where our clients are using our tools to get easier access to investment data, have more confidence in its accuracy and most importantly, derive some useful insights to better inform their investment decision-making teams.
Interestingly the authors conclude that data science can have a broad application in the investment sector, ‘’Ultimately, the purpose of this paper is to motivate an accelerated data conviction and innovative application of technology among all LPs (limited partnerships), not just the giants. By highlighting opportunities now available to data-ready LPs, we hope to spur on modernization efforts – and budgets. This case study is intended to convey information that all practitioners can identify with, and use to get started on what we believe to be an important expedition.’’
Compliments of Dr Ashby Monk, we can provide a full copy of the paper here.