Technology and Competitive Advantages
Technological excellence is a principal driver at Hudson Metrics. It plays a major role in our industry structural change, as well as in creating new industry standards. And Technology is also a great equalizer, eroding the competitive advantage of even well-entrenched firms and propelling others to the forefront.
Hudson Metrics relentlessly works to expand its technology content and have a competitive advantage even when compared to the biggest market competitors. We are the first firm in the World to offer precision investment tools for both institutional and individual investors.
Just like nuclear physics makes sense of the world by looking at the smallest particles of matter, breaking down financial instruments into their smallest constituents leads to powerful insights into pricing and allocation of even the most complex assets. This unique approach, which studies the most basic forms of financial instruments and contracts, promises to shape the future of finance.
Computational finance will lead financiers to strip out risks at will bringing a great prize within their grasp, because firms will be able to lay off the kind of risk they want to, and to just the degree they want to. In the same way, investors will take on precisely the risk that most suits them.
The Search for Alpha in a Data Saturated World
Quality of information is usually a guiding principle for effective investment strategies. But the main issue today in the markets is the massive excess of data, which makes extremely difficult for investors to see the reality of things. In this data-saturated world, wealth management firms are often tempted to opt for the shell-shock approach, making it almost impossible for their clients to distinguish between the absolute and the irrelevant.
What makes the investing task harder now is that the media reports are, nevertheless, suspect and useless. Therefore, the investor’s responsibility is even greater today. It is an everyday task to avoid being misled.
Investors are on their own in the war for Alpha. And the solution can be found in Technological Excellence.
Technology is in fact a great equalizer, eroding the competitive advantage of even well-entrenched firms and propelling others to the forefront. It plays a major role in our industry structural change, as well as in creating new industry standards.