Due Diligence: Embracing the New Normal

We all know we are living in unprecedented times. The Covid-19 pandemic has fundamentally changed the way we work, live and engage with one another. People will choose to work from home, travel less and use technology to become more efficient and effective.  This is the new normal and there is no going back.

It will be no different for asset owners. The technology already exists to make the due diligence process when selecting and monitoring managers more efficient, less arduous and highly productive. Data science and technology play a central role in all our lives now, the due diligence process should be no different.

In this paper, we look at how asset owners are using technology to illustrate this point and what this means in practice.

Download the full paper below to learn more about how we identify investment skill or contact us to find out more about how we analyse both decision making and portfolios to help improve the investment process and select skilful portfolio managers.

Harnessing Machine Learning

Using machine learning to provide custom portfolio analysis

The team at Inalytics has expanded their analytical tools to include machine learning. Machine learning is an innovative approach that allows the team to analyse datasets in a customised and bespoke way. Using machine learning, clients are able to see patterns and clusters in the data that would have otherwise been been obscured.

Download the full paper below to understand how we are using machine learning to identify investment skill.

Contact us to learn more about how we identify investment skill and help improve decision making for both asset manager and owners.

Observations from 100 million investment decisions

Inalytics have made observations from a large set of data. Through analysing over 100 million investment decisions we have made several key observations on how investors behave and generate alpha.

Download the full research article to learn more about how we go about identifying investment skill or contact us to learn more about how we analyse portfolios and decision making to improve the investment process and help select skilful portfolio managers.

Does investment skill exist?

Does investment skill exist? If so, what is investment skill? Traditionally, market participants and commentators have hunted for evidence of investment skill in industry wide databases of track records. This flawed approach has proved inconclusive and cast further doubt.

Inalytics uses analytic tools to examine and interrogate transaction data to help determine whether alpha has been generated through luck or skill. We use sophisticated tools and methods in much the same way as elite athletes use them to examine and improve performance.

We started by using Inalytics Peer Group Database of some 389 equity portfolios, part of a broader database that has been built up over the last 8 years and comprises over 100 million institutional investor decisions.

In our latest research paper we look to understand investment skill by analysing the investment process, decision making and strategy alongside performance, at the same time avoiding reliance on historic track records.

Download the full study to learn more about how we go about identifying investment skill or contact us to learn more about how we analyse portfolios and decision making to improve the investment process and help select skilful portfolio managers.

Investors’ reaction to the Gulf of Mexico oil spill

On 20th April 2010 an explosion sank the Deepwater Horizon platform and caused oil to flow into the Gulf. On 15th July a temporary seal was completed, followed by the fitting of the permanent cap on 19th September. Eleven people died in the disaster and 3.2 million barrels of oil leaked into the Gulf. This research shows how difficult it is to remain calm and rational when share prices are moving dramatically, and the level of noise is deafening.

Download the full event study to learn more about how we go about identifying investment skill or contact us to learn more about how we analyse portfolios and decision making to improve the investment process and help select skilful portfolio managers.