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Equity Investment Process

The future investment process will increasingly consist of series of technology intensive investment tasks.  The technology-based investment process can resemble that of a manufacturing operation as much as that of a traditional investment management organization.  Both processes are dependent on machines, consume raw materials, have an engineered work flow, yield final products, and then repeat the cycle. Throughout the process, the performance is being measured, managed and improved.

This investment process is based more on machine than human; it remains relatively static until changed.  Since it is less of a moving target, the technology-based investment process will change when and in the way the process owners choose.  Each cycle of the process provides opportunity for improvement.  The increased process efficiencies allow low cost manufacture of investment products.  All other things being equal, the low cost producer will prevail.
 
In the technology-based investment process, the discrete tasks and functions must be identified. Crowther Investment breaks the investment process flow into the following basic phases:

The mechanical nature allows the technology-based investment process to be transparent, measurable, repeatable, improvable, streamlined and highly scalable.


Boston Security Analysts Society - CFA Continuing Education

Portfolio Manufacturing: a View from the Shop Floor, Oct. 2003 

Hugh Lagan Crowther
(781) 640-3354
hugh@crowther-investment.com

Global Quantitative Investment:
Process, Data,Technology, Strategy, Marketing 
Data Science Consulting - Boston
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