Technology continues to be ever more important in asset management, transforming the investment process at rapid speed, according to Joseph Scafidi, Director of Global Trading, Brandes Investment Partners.
“It can streamline processes, reduce risk and costs, and improve client experience,” he said. This has already impacted the sell side dramatically over the past decade, he added.
As a member of a bulge bracket investment bank in 2005, Brandes had over 40 traders processing fewer trades than a team of five can on today’s trading desk, Scafidi said.
He added that many buy-side firms are also putting through larger and larger amounts of data through machine learning algorithms, natural language processing models, and other tools to extract insights and investment ideas.
Joe Scafidi, Brandes
Scafidi said that portfolio management solutions are expanding optimization capabilities and further integrating risk management platforms, therefore helping to minimize risk and seeking to maximize returns.
“On the trading front, we are seeing greater use of algorithm wheels and other…
