AlgoDynamix is working with a number of buy-side firms using artificial intelligence (AI) to aid portfolio construction and risk management. The UK-based group uses deep data algorithms to scan the real-time behaviour of buyers and seller to identify endogenous portfolio risk, rather than looking at external one-off black swan events such as when the Swiss central bank removed its currency peg. “AI has been used in many different areas including financial services, but it was never really applied on an institutional level until now,” said AlgoDynamix’s chief executive, David McKay.
AlgoDynamix is working with a number of buy-side firms using artificial intelligence (AI) to aid portfolio construction and risk management. The UK-based group uses deep data algorithms to scan the real-time behaviour of buyers and seller to identify endogenous portfolio risk, rather than looking at external one-off black swan events such as when the Swiss central bank removed its currency peg. According to the CEO and co-founder of the firm, Jeremy Sosabowski, the AI focuses on identifying internally generated risks that can blow up a portfolio, by spotting clusters of uncharacteristic buying and selling that typically occur 20 or 25 times a year,