Tue, Jan 23, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers December 2017

BULLETIN: Australian hedge fund veterans launch cryptocurrency fund, 70% of new hedge funds to use computer models, including AI and machine learning versus 47% in 2015, A&P Emerging Manager Index

70% of new hedge funds to use computer models, including AI and machine learning versus 47% in 2015

The Deloitte Center for Financial Services has published its 2018 Investment Management Outlook focusing on the big challenges in the year ahead for hedge funds, mutual funds and private equity firms.

Deloitte makes some predictions in there, including this one: With the exponential rise in data availability, and continued increases in processing power, 70 percent of new hedge fund launching globally in 2018 will include investment processes supported by computer models, including AI and machine learning algorithms, as compared with 47 percent in 2015.

Staying ahead of the curve

Many investment managers are augmenting traditional stock-picking methods with advanced analytical techniques and alternative datasets to stay ahead of the curve. These investment managers seeking organic growth via consistent alpha generation should be on the lookout for creative approaches utilizing technology and alternative data sources for making investment decisions. Alpha generation has shifted the focus

from the stock-picking skills of portfolio managers and traditional financial analysis to augmented processes including:

1. Quantitative and analytical techniques, such as artificial intelligence (AI)

2. New alternative data sources that can provide investment insight

Investment managers are using a myriad of technologies in their investment decision processincluding AI and other advanced analytical techniques to improve their traditional processes. In fact, many hedge funds and family offices are using AI not only for investment decision making, but also for finding better ways for executing trades.

The transition to such augmented investment processes seems to be accelerating as the volume of available data rises exponentially. Investment managers like Man Group PLC (see Rise of Man Group assets via AI and a......................

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. Opalesque Exclusive: Statsure Financial launches captive insurer for hedge funds[more]

    Bailey McCann, Opalesque New York: Hedge fund managers have a new option for protecting their business. Launching this week at the annual MFA Conference, Statsure Financial is offering a captive insurance solution for hedge fund managers. Many large companies have captive insurers - insurance

  2. Legal - Former Och Ziff hedge fund executive indicted for fraud in Africa investment scheme, prosecutor says, Hedge fund blasts defense of Puerto Rico restructuring law[more]

    Former Och Ziff hedge fund executive indicted for fraud in Africa investment scheme, prosecutor says From CNBC.com: A former hedge fund executive faces federal charges for defrauding a UK-based charity over investments in Africa, according to a grand jury indictment made public Wednesday.

  3. U.S. economy, inflation and alternative investments to dominate 2018 markets, says family office Wilmington Trust[more]

    Komfie Manalo, Opalesque Asia: The emergence of a late-cycle economy in the U.S., the mystery of inflation and growth from a domestic and global perspective, and the potential for alternative investments to prosper against a backdrop of rich valuations, low yields, and higher volatility are the t

  4. Performance - Some hedge funds deliver double-digit gains for 2017, Brevan Howard's hedge fund suffers biggest annual loss in 2017, Crispin Odey's flagship hedge fund plummeted about 20% in 2017, Profits fall 90% at ex-Morgan Stanley banker's hedge fund, Fannie-Freddie overhaul might mint hedge fund riches, losses[more]

    Some hedge funds deliver double-digit gains for 2017 From Reuters/Investing.com: A handful of hedge funds ended 2017 with double digit returns, their investors said, at a time the $3 trillion industry took in fresh money and posted its best returns in years, industry data show. Act

  5. Investing - Hedge funds start 2018 with record $19 billion bet on the euro, Hedge fund Kora Management invests in Satin Creditcare[more]

    Hedge funds start 2018 with record $19 billion bet on the euro From Reuters.com: Hedge funds have kicked off 2018 with their biggest bet ever on the euro rising, a clear vote of confidence in the single currency but, with positioning so stretched, one which could backfire in the near ter