How asset managers apply modern investment technology

[Practical criteria for discerning the value of modern investment technology are not only found in the structure of the technology itself; it can also be measured by the flexibility of the tool and range of applications it can address.

Exploring this topic further, we reached out to Rocco Pellegrinelli, CEO of Trendrating – a Swiss-based research firm providing technology for an advanced alpha discovery and price trend capture process uncovering factual insights and market analytics with a measurable impact on performance. As he says, “making the difference between information that apparently makes sense and information that actually makes money”.

He specifically designed his modern data research platform with AI technology (including an AI Assistant) and enhanced market intelligence capabilities that, in a few clicks, can be quickly added as a research and decision-making overlay to any investment manager’s current investment process.

To illustrate how modern investment technology is being used, we asked him to compile for us the different ways that his research platform, as a performance management partner, is being used by his clients to help them beat benchmarks and passive fund performance on an ongoing basis.]

Tooth: Who are your customers and how did you develop your research platform to meet their needs?

Pellegrinelli: We serve a wide range of more than 300+ investment customers – from Grote Wall Street companies, fund managers and asset management companies to RIAs, financial advisers and family agencies. This large cross-section of customers is a good indicator of the unique flexibility of our research and performance management platform to tackle different needs of institutional investment manager.

Our mission is to help our customers of investment manager generate usable, measurable and repeatable Alfa. To this end, our research platform was built to provide advanced alpha discovery, price trend analyzes and real-time risk management opportunities that offer differentiated market information and factual insights that have a measurable influence on performance.

Designing flexibility when working with our research platform ensures creative experiments and the opportunity to meet a wide range of manager needs in their investment process development. It has always been interesting for us to see how our customers use the platform in different ways and for different purposes.

Tooth: Can you share some of the different ways with us on which your customers use your research platform?

Pellegrinelli: Let me break out a number of important ways in which our customers use our platform:

Strategy -Onze alpha discovery possibilities enable a wide range of investors to explore, test and design adapted strategies by gaining access to a ranking of performance production of various specific and combinations of investment parameters (fundamental, quantitative, volatility and trend-parameted-parameted) Change, change the parameters, test the most productive combination for each specific investment universe and validates with historical evidence.

Strategy guidance -We offer a directory of monster optimized, multi-factor strategies-unless optimized active strategies-using the best mix of criteria or factors that have been developed through massive tests that have been able to surpass benchmarks and have all been documented in our system. The folder of extensively tested and optimized strategies has been used to extract more insights for active model portfolios.

Strategy -painting – Discretionary investors use our system for strategy painting to discover which investment criteria or fundamental factors can give them an extra lead on performance. They can easily improve their investment process by using extra knowledge with the market information and the insights that our research platform offers.

Systematic investors – Can build more effective systematic strategies with differentiated information about research and market information for each specific market. Our technology is used to enable the building, optimization, testing and implementation of systematic strategies. All with a few clicks, saving time and supporting full scalability about markets and sectors, which cover themselves for a long and short portfolios for a long and short portfolios. Many professional systematic and tactical investors strive to constantly improve their research tools, sharpen their investment process and actively look for new investment technology to strengthen and modernize their investment capacities.

Praise analysis – Investment managers are increasingly looking for early validation of the prize trend, because it offers active managers the opportunity to record the performance dispersion between shares and sectors. Performance Diseasure is a repetitive fact in every market cycle and offers a way to deliver superior performance. As an example, the dispersion in the American Large -Cap Universe was in 2024 +39% return for the top 25% of the shares versus -24% for the lower 25%. The ability to distinguish and adjust the exposures to portfolio between these winners and losers can have a major impact on the return. A smarter information work can make the performance dispersion between shares, for better performance, risk management, better use and better perform than the relevant benchmarks. Our model is designed to capture the real strength and direction of trends by measuring buying versus sales pressure, the most important engine of market movements.

Validation of investment ideas – The platform offers managers the opportunity to rank lists of shares that combine the quality of Fundamentals and underlying trend analysis with a few clicks.

Strengthen Buy & Sell discipline – Our price trend analysis generates warnings that record trend covers well before conventional tools. This platform capacity has been added as a cautious risk -overlay to help validate positive trends and avoiding shares that show weak price action that can help determine stock input or sell decisions or adjust your portfolios.

Use our AI assistant – Response has been strong for our dedicated AI assistant embedded in the research platform to personally help and guide every investment manager using an investment discipline to reveal factual insights that can have a measurable impact on performance and better control risks.

Tooth: What other unique capacities for investment manager do your research platform offer?

Pellegrinelli: Our research platform has the opportunity to offer a portfolio intelligence solution that is mentioned Trend (TCR) for active portfolio managers. It determines the aggregated, weighted price trend ratings of all companies, which measures the overall allocation of the total portfolio of falling versus rising shares. This offers a clear statistics to evaluate and control a portfolio in terms of exposure to shares in a bull -trend versus a bear phase and has a strong predictive value with regard to relative returns to his benchmark. A larger “trend allocation” to rising shares, well above those in the index, increases the chance of beating the index.

By delivering a truly holistic risk profile, this allows advanced intelligence views managers to adjust portfolio tags as market conditions evolve, leaving risks and opportunities. By recording trend analyzes, the research platform offers early warnings for deteriorating companies and rising volatility. This gives money managers enough time to make informed decisions and to prevent unnecessary drawings. It also provides the more intelligent benchmarking for risk-corrected performance. By comparing the TCR of a portfolio with that of his benchmark, managers can measure relative positioning, expected performance deviation and downward exposure.

Tooth: How do you explain the differentiation and value proposition of your platform to professional investment managers?

Pellegrinelli: One of the most important distinctive factors of trendel rating is that our modern research platform and investment technology do not only provide data. It is an extensive, “all-in-one”, performance management toolkit to design, test, improve and implement investment strategies. We offer innovative advanced analyzes and AI technology that can improve investment performance and control risks more effectively.

The other important distinctive factor and benefits for investment managers is that we have also designed our platform and the inherent research process for maximum usability and the inherent research process speed – To enable managers to quickly and efficiently, with a few clicks, to arrive at the insights they need.

The ability to quickly use the data and research platform and gain access to those insights are now structurally improved by offering a dedicated AI assistant to help reveal factual insights that can have a measurable influence on performance. This personalized support is an important step forward in how investment professionals can communicate and benefit from a research platform that transforms it into a real “performance management” platform.

Tooth: Any last thoughts that you want to share with investment managers?

Pellegrinelli: Our dedication to investment managers is to offer them the modern market data research technology they need and earn in this rapidly changing, complex investment environment. We are convinced that better information leads to better decisions and better performance that can help them to constantly beat their benchmarks and passive investments. The impact of our research platform for the “performance management” of the technology is completely measurable and traceable in the trending system.

We currently invite and offer managers Extensive free tests To prove with facts and to prove how our advanced AI Price Trend Analytics and Alpha Discovery Research Platform can offer that can offer improved market information, strengthen risk management and improve the investment performance for each manager, using any investment method.

This article was Originally published here And is re -published on wealth with permission.