How (and why) technology is changing investment forever.


Machine learning. Big Data. Cloud computing. Artificial Intelligence. Algorithms. We’ve all heard the technology buzzwords. And we’re constantly being told that they’re going to change our lives, without really understanding how (or even why).

For us at Differential Capital, how each specific technology works is not the point. We don’t care about the buzzwords. What we care about is what technology can do for us, and the ways we can use it to gain a clear industry advantage for the benefit of our clients. Well, three ways, actually.

Better returns for our investors

The bottom line is that the modern generation of technology isn’t just making the investment industry more innovative, secure and agile: it’s helping us deliver better investment outcomes to our clients. Which is a polite way of saying we help them make more money than they would have if we’d been using traditional investment approaches. That’s tough to argue with.

Better risk management and mitigation

Every investor has their own tolerance for risk, and a corresponding desire for reward. That’s why our business is all about containing volatility and limiting exposure when markets are tough, while giving investors as much exposure to the upside as possible. And machine learning and statistical methods are extremely good at mitigating risks. Humans are notoriously gut-driven, and battle to understand how portfolios act in various scenarios. Machines take much of the guesswork – and the risks – out of investing.

Better ability to invest responsibly

The beauty of technology lies in the fact that it frees us up to spend our time on the decisions that need a human element. So, by doing a lot of the heavy lifting around data analysis and risk management, technology allows us to spend more time on our passion, which is ESG and responsible investing. These are important discussions that need human focus, and add real value to us and our clients.

Is your asset manager on the cutting edge of technology? If not, ask yourself why. And then speak to us. We’ll show you how technology is changing the game. And that’s a good thing for all of us.