Will AI help fund managers, or replace them?

FN London (subscription)

Hedge fund managers want to dispel fears that robots are going to take traders’ jobs, but the Robopocalypse may still be coming. Researchers at London’s Alan Turing Institute say algorithms are getting better over time, but humans are not progressing as quickly. Read More

The rise of ‘quantamental’ investing: adapt or die

Financial Times

With varying degrees of gusto, fund managers are adapting to an era defined by automation, algorithms, and big data. ‘Quantamental’ investing is an admittedly awkward phrase, but many think its essence will define the future of asset management. Read More

UBS Asset Management taps alt data to increase alpha

Forbes

The bank’s investment management arm is starting to test and apply machine learning to fund flows, product innovation, alpha generation, risk management, and middle/back office operations. Read More

Firms to boost alt-data budgets by 240%

Financial Technologies Forum (subscription)

Asset managers are expected to dramatically increase their use of alternative data and advanced analytics, with investment in areas such as machine learning, natural language processing, and smart robotic process automation to more than triple over the next three years. Read More

Microsoft patent activity shows rising focus on AI

CB Insights (subscription)

Microsoft has applied for over 1,000 patents related to artificial intelligence or machine learning since 2012, in areas like healthcare, financial services, security, and more. While few of these patents will become products, it suggests the area will be a primary focus for years to come. Read More

The impact of artificial intelligence on the world economy

Wall Street Journal

A report by McKinsey says artificial intelligence has the potential to incrementally add 16%, or around $13 trillion, to current global economic output by 2030. Of course, along with this comes significant disruption for workers, companies and economies. Read More

CloudQuant partners with RavenPack to expand alt-data ability

Business Wire

CloudQuant has added of RavenPack analytics within their trading strategy incubator, enabling researchers to use RavenPack historical data to identify tradable alpha signals on the company’s online Python- and JupyterLab-based tools. Read More

Alternative data and the hunt for alpha: a rich man’s game?

Fintech Policy

This piece presents a contrarian view that likens the terms “alt data” and “alpha” to “dude” and “bro.” The author asserts that firms with a capital edge are sourcing all the unique data and squeezing relevant alpha out of it, diluting it so drastically that by the time it reaches the next management tier it’s almost completely devoid of value. Read More

China’s Orwellian social credit score isn’t real (yet)

Foreign Policy

China’s sweeping, data-driven, “social credit” initiative is sounding alarms by collecting vast information on its citizens. But contrary to the mainstream narrative, authorities are not assigning a single score that will determine every aspect of every citizen’s life — at least not yet. Read More