“The winners will be managers who thrive on creative discovery and position themselves at the intersection of domain, data, and digital, the three circles of successful investing.”
We share the full agreement with the author. Data and new computational models enhance the traditional equity-valuation metrics in valuation, quality, or momentum factors. For instance, an NLP-based text analytics model can digest massive market information and provide sentiment scores, which might guide retail-driven price momentum.
Asset management professionals are long required to adopt the new investing paradigm. We believe we are still in the golden age of quant.
The Golden Age of Quant, E. Sorensen, The Journal of Portfolio Management, 46 (1)