Can ‘Big Data’ Help Boost Investment Returns?

Many fund managers are turning to big data and automated processes for more detailed stock research

Sam Shaw 9 February, 2017 | 9:55AM

Investors around the world will often talk about the ‘whites of the eyes’ test when considering an investment decision.

That may pertain to a fund selector who likes to have a coffee with a fund manager on whom they are conducting due diligence, or it might be a fund manager who insists on sitting across the table from the CEO of a prospective holding.

In these cases, human instinct and emotional decision-making are integral to the research process. But what about the apparently growing trend for funds to strip out the personality, rely on the rise of the machine and tap into the now-ubiquitous concept of ‘big data’.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Apple Inc122.72 USD3.08

About Author

Sam Shaw  is a financial journalist and broadcaster writing for Morningstar.

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