Sameer Deshpande, Citibank
Regional head of investments, Asia & EMEA
In the past, many asset managers invested in data science in terms of both talent and infrastructure in an effort to harness alternative data sets and machine learning. It is too early to judge the success of such an approach because it has a short track record and is not exclusively used in the investment process.
Separately, the more traditional quantitative strategies, such as factor investing and CTA strategies, once the domain of hedge funds, have increasingly found expression in the traditional mutual fund formats.
They have potential diversification benefits but are clearly dependent on each investor’s actual portfolio. Since 2018, however, such strategies have experienced outflows and performance has been impacted.
We monitor a range of managers undertaking such strategies on an ongoing basis and selectively onboard managers who have a strong track record and research capabilities.