RT Journal Article
SR Electronic
T1 “Big Data” Meets “Smart Beta”
JF The Journal of Index Investing
FD Institutional Investor Journals
SP 39
OP 50
DO 10.3905/jii.2015.6.1.039
VO 6
IS 1
A1 Richard C. Davis
YR 2015
UL https://pm-research.com/content/6/1/39.abstract
AB There is business intelligence in “big data” that can be utilized to improve performance in both actively and passively managed portfolios. But extracting that business intelligence from big data has a number of challenges, including the processing scale implied in the name itself. This article is intended to be a primer for investment professionals seeking to learn more about how to meaningfully utilize the brand-name citation metrics that are available from big data. It shows how to use those metrics as either a new form of fundamental data for tactically or quantitatively managed active portfolios, or as alternate selection and weighting strategies for tracking tolerant “smart beta” applications.TOPICS: Big data/machine learning, portfolio construction, passive strategies