Big Data & Investment Management (Citi)

Big Data & Investment Management: The Potential to Quantify Traditionally Qualitative Factors

KEYWORDS:

Authors:

Citi Business Advisory Services

Organizations:
  • Citigroup

Summary:

Big data is a catchphrase for a new way of conducting analysis. Big data principles are being adopted across many industries and in many varieties. However, adoption so far by investment managers has been limited. This may be creating a window of opportunity in the industry.

Investment managers who are able to harness this new approach could potentially create an information edge in their trading that would put them significantly ahead of their peers and allow them to profit from an “information arbitrage” between their expanded models and those of investment managers following more traditional analytic techniques.