PT  - JOURNAL ARTICLE
AU  - Ananth Madhavan
AU  - Stefano Pasquali
AU  - Philip Sommer
TI  - How Trading Analytics and Data Science Can Improve Investment Outcomes
AID  - 10.3905/joi.2022.1.245
DP  - 2022 Nov 30
TA  - The Journal of Investing
PG  - 104--114
VI  - 32
IP  - 1
4099  - https://pm-research.com/content/32/1/104.short
4100  - https://pm-research.com/content/32/1/104.full
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.