Data Management

10:54 AM
Andrew Peddar, StatPro Americas
Andrew Peddar, StatPro Americas
Commentary
50%
50%

Turning Big Data into a Dashboard for Investment Managers

The rise of data aggregators pulling information from various cloud-based sources, fueling front-end analytics, will make Big Data more usable for investment managers, contends StatPro North America's Andrew Peddar.

So far the Big Data discussion has focused largely on how firms will manage massive volumes of data deep within the bowels of the IT infrastructure. But for investment and asset managers on the front lines of the business, Big Data is really about one thing: how to get a complete and transparent view into your investment world.

For business users, Big Data management is all about usability — asset managers and investment managers need to know how they can harness, quickly analyze and report on Big Data. In other words, money managers really care about how to put information to work – so IT managers within asset management firms should focus on technology solutions that will help support that need, from the back office through to client-facing technologies.

A Single View

The main impediment to Big Data usability is that it’s very hard to get all the relevant bits of data related to a client’s portfolio into one place. Even the most powerful portfolio analytics systems, including those that are based in the cloud and can draw on massive stores of performance and pricing data, don’t always provide a view that draws on a comprehensive data set.

The reality is that a comprehensive view is very difficult to achieve. Say, for example, that an asset manager uses a portfolio management interface that lets them slice and dice data to show risk hot spots, assess historical performance and stress-test client portfolios. Those are all valuable capabilities, but they are only as strong as the data that inform them. Without confidence in the comprehensiveness of the data, portfolio managers can’t be sure they are getting a single, clear and accurate view of how their clients’ portfolios are performing.

The Rise of the Data Aggregator

Knowing that data must be comprehensive to provide a complete picture of what’s happening in any given portfolio, and knowing that data volumes are expanding by the minute, the challenge seems formidable. If tera-and petabytes of data are behind an average day or week’s worth of trades and transactions, how can an investment manager ever possibly hope to make assessments about portfolio performance with absolute confidence?

Of course, every investment manager makes educated guesses — even the most sophisticated tools can’t account for every tiny sliver of information on the markets. However, money managers can have a greater degree of confidence when they know that their portfolio analytics are informed by not just several, but many, many sources of data.

Previous
1 of 2
Next
Comment  | 
Print  | 
More Insights
More Commentary
Is Your Corporate Data Being Auctioned on eBay?
Researchers purchased 20 used Android phones to see what data they could retrieve using off-the-shelf recovery software. The results were astonishing.
Getting Social: Top Tips for Establishing a Social Media Plan
As the influence of social media channels continues to grow, organizations must have a handle on the regulations and the risks social can introduce to a firm.
Why Settle for Less in the Front Office?
Recent research shows that sell-side firms are less than satisfied with their order management system (OMS) technology. Many front offices, however, continue to make do with their current solutions. Are they selling themselves short?
BYOD Policy: Don't Reinvent the Wheel
Financial firms still feel overwhelmed by BYOD risks and challenges. But these can be addressed by a good policy, and the guidelines are already out there.
The BYOD Challenge
Having a policy in place to manage mobile devices used by employees for work purposes is necessary in this current day.
Register for Wall Street & Technology Newsletters
White Papers
Current Issue
Wall Street & Technology - July 2014
In addition to regular audits, the SEC will start to scrutinize the cyber-security preparedness of market participants.
Video
5 Things to Look For Before Accepting Terms & Conditions
5 Things to Look For Before Accepting Terms & Conditions
Is your corporate data at risk? Before uploading sensitive information to cloud services be sure to review these terms.