Some industry experts argue that machine learning (ML) will reverse an increasing trend toward passive investment funds. But although ML offers new tools that could help active investors outperform the indexes, it is unclear whether it will deliver a sustainable business model for active asset managers.
What Machine Learning Will Mean for Asset Managers
As algorithms get smarter, who will be the winners and losers on Wall Street?
December 03, 2019
Summary.
The tools of machine learning may offer active fund management firms many opportunities to outperform competitors and market indices, but the investments required in data analytics will be significant and the competitive advantage obtained many not be sustainable in the long term.
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Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Finance Essentials. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Strengthen your fluency in financial statements.