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Matthias Knab, Opalesque for New Managers:

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 ......................

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