Mon, May 21, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers February 2017

SERVICERS' SPOT: Blue Lion, or AI for alternative investments

 

Modern investor tools (5): Blue Lion, or AI for alternative investments

A new series on technology providers that assist asset allocators.

Blue Lion Research, a City of London Fintech company, is bringing in artificial intelligence (AI) to provide deeper analysis for investors and managers.

For investors, the firm assesses operational criteria, clauses and features of legal documents, and provides comparison with peers and response to market conditions. And for managers, they evaluate differentiation and provide a better understanding of their fund universe. Their new product launched in August 2016 after two years of research and development. Co-founder Grant Fuller talks to Opalesque.

Opalesque: How did you get started?

Grant Fuller: The whole process started when we originally were having a conversation with some institutional investors who were saying that over time, they were becoming increasingly head-count pressured: they didn't have as many analysts at their disposal as they used to, but they were still being inundated with more and more soliciting funds.

And the idea was floated that the rise in machine learning and AI might offer a nice solution.

So we did some some research and it turned out this indeed was the case. It is possible to take data gathered from funds, from markets and data collected from institutional investors, and put those three components into a machine learning and AI environment and have the machine identify relationships between funds and the markets, but also between the funds and the investors. That was not possible or obvious previously.

Of course, the machine can do this much faster than a human analyst can. The goal here was not to produce robo trading for hedge funds. The goal was to make it possible for an in......................

To view our full article please login

This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.
New Managers
New Managers
New Managers

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. News Briefs - Warren Buffett: Target date funds aren't the way to go, Cambridge Analytica could be reborn under a different name[more]

    Warren Buffett: Target date funds aren't the way to go Planning for retirement can be complicated and stressful. This is why target date funds - funds that are managed based on when you expect to retire - are so attractive. Over time, the balance of stocks, bonds and cash evolve automati

  2. Investing - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Irishtimes.com: Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  3. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  4. Study: For hedge funds, smaller is better[more]

    From Institutionalinvestor.com: The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg.com: Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven