AI and Analytics in Asset Management

In the investing space, both artificial intelligence and unstructured data have become big topics in recent times. AI has transformed how traders, asset managers and others can glean insight out of the massive amount of data that exists today.

In a notable piece of synergy in these areas, Liquidnet this week expanded its AI offerings with its acquisition of Prattle, an automated investment research provider. Prattle uses natural language processing and machine learning to produce analytics that traders can use to make sense of unstructured data, such as measuring sentiment and predicting the market impact of publicly available content including central bank and corporate communications. Asset managers can then use these analytics to understand and anticipate relevant market movement, strengthen investment theses, and inform trading strategies.

It’s part of an overarching strategy for Liquidnet in the AI space; in the last two years it has also acquired OTAS Technologies, an AI-driven analytics firm, and RSRCHXchange, a data aggregator and marketplace research provider. We suspect there will be many more deals like this going forward as savvy investors seek to exploit any edge they can get out of market data.