| |July 201919he effect that information has on security prices has been at the heart of financial economics research for decades. The general consensus is that superior returns can be achieved with superior information.However, monitoring what fuels stock performance is a constant challenge for active investment managers.Active managers are constantly attempting to find inefficiencies in the markets. They do this by using a unique variety of strategies to build portfolios, based on the understanding and insight of their research staff and the information they are able to process. In today's world, monitoring the wealth of information presents a unique challenge unlike ever before.The effectiveness of any active investment strategy critically depends on the ability to process the enormous amount of information that is constantly arriving. A firm is impacted not just by news related to it but by any event or information that can impact its operations or business model; for example, a new product introduction by a competitor or a macroeconomic development that drives demand for the firm's products. In fact, the number of ways a firm can be impacted is both large and complex, and requires extensive monitoring and interpretation of the information universe. Relevant information may not even contain the firm's name at all, but could have a second or third order effect on it.The ability to quickly assess events reported in the news, emerging research, blogs, and more is essential to having an effective investment strategy. However, the in-credibly high frequency and heterogeneity of information flow now far outstrips the capacity of investment man-agers, asset managers, hedge fund managers, quantitative managers and other financial services professionals and their staff to process all the data related to a fund against a complex model systematically and consistently. Achiev-ing real-time intelligence for capital markets cannot be attained without the right technology to help guide the process.REAL-TIME INTELLIGENCE FOR CAPITAL MARKETS: LEVERAGING AI TECHNOLOGY TO DETECT SIGNALS FOR IMPROVED MARKET INSIGHTBy Vikram Mahidhar, SVP, RAGE Frameworks Inc.T CXO INSIGHTS
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