Quantifi, a provider of risk, analytics and trading solutions, today published the results of a recent survey conducted at the Hedgeweek emerging managers’ summit in New York. The event was aimed at management firms and funds in their early stages of development. The survey gathered insight from over 150 delegates.
The investment management sector is currently experiencing transformative shifts due to new economic and geopolitical challenges. The implementation of new regulations has also introduced operational complexities, leading to unprecedented change for investment managers. Advanced technologies, such as machine learning, AI, and data science, are reshaping the industry, prompting firms to reassess their investment strategies and methods of attracting investors. Emerging investment managers face challenges but there are opportunities to differentiate themselves and thrive. By navigating challenges and capitalising on new technology trends, firms can carve a niche in the competitive investment management world.
Key findings from the survey:
- The top technology priority was implementing data analytic tools (83%). This is not surprising given the complex and data-driven nature of the financial markets. The most sophisticated tools, such as those offered by Quantifi, enable portfolio managers to analyse vast amounts of data, identify patterns, and make informed investment decisions.
- Investment managers employ rigorous strategies for assessing and managing risks. For this, a combination of quantitative models and risk analytics is considered a priority (67%). Through thorough analysis and advanced models, firms can evaluate market volatility, market, credit and liquidity risk, and potential disruptions.
- Investment management firms consistently strive to enhance alpha generation and expand assets under management. As funds grow and adapt, having a robust and efficient PMS/OMS becomes a priority. Real-time monitoring and reporting tools (50%) are a key factor when selecting a PMS/OMS.
“The hurdles faced by emerging investment managers are more pronounced than ever, as they encounter heightened barriers to entry, resulting from a burdensome regulatory landscape, and the impact of the macro-economic environment on investment performance. To thrive, firms need to harness the latest technology. Quantifi has made substantial investment in new technologies and analytics. By embracing emerging technologies early on, we empower our clients with a distinct competitive edge,” comments Alexei Tchernitser, Director of Product, Quantifi.