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The Big Deal about Big Data

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What is Big Data and why does it matter?

Big Data is a popular term used to describe extremely large sets of data which can be analysed using advanced technologies to reveal patterns, trends, and associations. Big Data changes how we shop, eat, network and how we invest, transforming companies, sectors and the broader economy. Using technology and data to deliver cutting-edge investment insights, the Goldman Sachs CORE® Equity Portfolios employ a disciplined application of quantitative techniques to capture both the fundamental as well as the behavioural aspects driving companies’ stock returns.

3 Questions with…


Gary Chropuvka, Co-Head of GSAM's Quantitative Investment Strategies team

 

How important are evolving
trends in Quantitative
Investing?
+

Active investment management has always been about generating an informational advantage and anticipating evolving trends more quickly than other market participants. The exponential growth in data for example is so significant; it impacts multiple parts of our everyday lives, while rapid advancements in technology enable us to push the boundaries of conventional asset management.

What next big trend will impact the GS CORE® Equity
Portfolios?
+

In the past, we could only use computers to analyse easily quantifiable and organised sets of data such as numbers in a spreadsheet. Today, new technologies allow us to analyse unstructured data, such as language and images, for the first time. As more new data sources become available, we continue to research novel investment ideas to enhance our process.

Will computers replace human portfolio managers in the future?
+

No, we view technology and data as tools to enhance the decision making process of our portfolio managers and before we act on any of the information generated by our quantitative models, our portfolio managers review every trade and position and may intervene during certain periods of extreme stress in an effort to reduce or contain risk.

Big Data is Revolutionising Industries

Companies that find ways to harness Big Data may separate themselves from their competitors and create value for investors.

What happens online in 60 seconds?


dataCreation

For illustrative purposes only. All investing involves risk, including the potential to lose money. Source: Statista, December 31, 2017

Now and Then


sectors

1 Source: Bain. 

From an Idea to an Investment

We use data and technology to enhance our knowledge, experience and judgement, seeking to translate a virtually infinite amount of data, both traditional and non-traditional, into actionable investment ideas.

Evaluating Companies for our Portfolios


Our CORE® Equity Portfolio investment team believes there are several characteristics that drive a company’s stock performance.

 

Goldman Sachs Equity Insights Funds

Quality

Identifying high-quality, well-run companies

Fundamental Mispricings

Finding underpriced companies that are well-positioned for the long run.

Sentiment

Analysing investor sentiment in the market

Themes and Trends

Discovering linkages, themes and trends

 

 

Our data-driven investment process is built upon expansive and rigorous research, repeatable security selection and risk awareness.

 

consistentMethodology

11 Source: GSAM. For illustrative purposes only. As of December 31, 2017.

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