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Alternative Market Briefing

Hedge funds slow to adopt AI: Survey

Monday, October 19, 2020

Laxman Pai, Opalesque Asia:

Hedge funds are still slow to adopt artificial intelligence and machine learning to make investments or trades, with 87% of respondents stating that their hedge funds do not utilize these tools, said a survey.

When asked to name the top challenge for their business, hedge fund executives noted cybersecurity concerns (31%) followed by incorporating new technology (25%), revealed a new survey of more than 250 alternative investment professionals conducted by EisnerAmper.

Notably, fluctuations in international trade policy were only cited by 13% of respondents as their primary concern, down steeply from 40% last year when it was the leading issue.

Despite a slow uptake of technology, hedge funds are still thinking innovatively in today's uncertain market to capture new opportunities and bring value to investors, the survey said.

Forty-three percent of hedge fund executives reported that they have considered launching a new product and/or fund utilizing a different strategy from their core strategy in the last six months, with an additional 14% reporting that they have launched such a product or strategy.

"The virtual environment has caused a dramatic shift in hedge funds' top concerns and challenges from fluctuations in international trade policy last year to cybersecurity concerns this year," said Peter Cogan, Managing Partner of EisnerAmper's Financial Services Industry.

"However, we're also seeing the industry consider new opp......................

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