Investment Research: Time for Innovation
Updated: Jul 8, 2021
Introduction to Blog Series
Investment research processes for active asset managers have remained largely unchanged for the past two decades despite increasingly efficient markets.
Professional investors read on average 200-500 pages each day to stay on top of the markets. To put into context, that is the equivalent of reading one volume of Lord of the Rings every day. Investors are inundated with information, but the exponential growth of information makes it even harder to keep up.
It has become clear over the last 10 years that this traditional method of stock research is not working. A staggering US$30 trillion of people’s collective savings are entrusted to active asset managers but 87% of these funds underperform the market, earning subpar returns. (Refinitiv and S&P, data as of 2Q2020) Fund managers have lost their information edge. The widespread underperformance of actively managed funds has a negative impact on society and is widening the wealth divide.
In this series of blog posts, we will zero in on the top conundrums faced by active fund managers, evaluate various data science initiatives they’ve adopted to tackle these challenges, and offer our insights on how to operationalize data and AI into your organization. Stay tuned!
Seleya Technologies is an industry expert in AI and quantitative analytical tools for financial institutions. We leverage AI to augment human perspectives, enabling financial institutions to make decisions faster, more accurately, and with less bias.
Our two solutions include ExpertAI for institutional investors and ExpertAI ESG™ that scales up a financial institution’s in-house, proprietary ESG assessments.
Our team has been authoring the intersection of AI and investing since 2013. The company is founded by experienced investors and computer scientists with over 20 years of experience developing solutions for financial institutions.