Expert insights, data and technology are the pillars of analysis and predictions
White Plains, New York–(Newsfile Corp. – March 15, 2022) – Paradigm, an asset management company, builds and manages investment strategies using an innovative data science approach. In doing so, they are able to also leverage their robust investment platform AMMD to create new investment strategies with speed and agility.
James Francis, the founder of Paradigm Asset Management, said, “Human insights, data and innovative technology are the key pillars they lean on to develop next generation investment solutions. Their approach is what he refers to as collective intelligence. He believes that combining data with sophisticated software and computing power allows them to identify predictive features from the voluminous datasets with speed, depth and breath that ultimately results in alpha signals across global markets.”
So, what is the most recent application of “collective intelligence” at Paradigm? The unique product development capabilities have given rise to new two strategies – World Value and International Value.
The value proposition of Paradigm is its investmet platform ability to provide strategies to meet different investors needs and market dynamics. The objective of the World Value strategy is to offer investors exposure to mid-to-large cap value stocks globally, whereas the International Value strategy excludes US-listed stocks.
One might wonder at this point how are these products and strategies designed? And what were the parameters? So here it goes: These strategies offer exposure to 75 to 100 names, and are benchmarked to the MSCI World Value Index and the International EAFE Value Index.
Delving deeper, Paradigm has built key technologies that drive their processes:
Data Management – In this realm, the AMMD database houses market data that has been curated for over 30 years. Insights and analytical solutions are derived from the expansive collection of holdings data on over 20,000 strategies and 55,000 global securities across 32 markets.
Data Screening – Paradigm leverages AMMD proprietary analytical tools and processes to analyse the portfolio and position-level data that is able to identify and map patterns. This enables the identification of the style regime and factors that shall likely outperform in the current market environment.
Multi-Expert Modelling – Here, various datasets can be created to serve as dynamic active indexes. The innovative software, Dminor, analyses the collective behaviour of portfolio positions, leading to capturing of predictive-level insights and forecasts on the attractiveness of individual securities, sectors and factors that best suit the market conditions.
Armed with these tools, Paradigm is able to develop active, passive and alternative investment strategies across global, international, emerging and domestic markets. The signals can be incorporated into long-only, long-short, absolute return and liquid alternatives. Lastly, Environmental, Social and Governance (ESG) overlays are available for any exposure.
Decision-making is a holistic process that benefits from a multi-perspective take. In this regard, James Francis continues: “Our customer satisfaction is a direct byproduct of our insights, and decisions”. With that said, the ultimate goal is to maximise returns and minimise risks for investors.
So, how does Collective Intelligence supersede the dominion of fundamental and quantitative investment approaches? CI delivers the depth of fundamental analysis, minus human biases or errors. It also offers the scalability, breadth and scope of quantitative approaches in a more dynamic fashion.
Paradigm, has thrived upon Collective Intelligence for some time while it is a new-found phenomenon for many. Unlike several other AI-driven processes, this one serves to amplify the mind with data and technology. No matter how profound, AI cannot replicate human instincts and intuition. And that is where Collective Intelligence comes to the fore. CI, in essence, is a super intelligence comprising human expertise, data and innovative software tools. The result? It stands to offer the best of both worlds.
Founded in 1990, Paradigm Asset Management is a leading minority & woman owned enterprise that specialises in managing innovative equity investment strategies for institutional investors. The data science approach, coupled with investment discipline, puts forth an optimal blend of market intelligence with technology.