RT Journal Article
SR Electronic
T1 How Trading Analytics and Data Science Can Improve Investment Outcomes
JF The Journal of Investing
FD Institutional Investor Journals
SP joi.2022.1.245
DO 10.3905/joi.2022.1.245
A1 Ananth Madhavan
A1 Stefano Pasquali
A1 Philip Sommer
YR 2022
UL https://pm-research.com/content/early/2022/10/12/joi.2022.1.245.abstract
AB This article shows how advanced trading analytics can help asset managers deliver improved investment outcomes for client portfolios using both indexing and alpha-seeking strategies. For alpha-seeking managers, trading analytics help right-size trades by balancing alpha capture and transaction costs optimally. For indexing managers, these tools enable more-precise and lower-cost transactions, especially around index rebalancing. Advances in data science can help overcome traditional trading challenges in fixed-income markets, such as the lack of transparency and proliferation of distinct securities.