Handbook of Artificial Intelligence and Big Data Applications in Investments

Larry Cao

Apr 2023 · CFA Institute Research Foundation

About this ebook

Artificial intelligence (AI) and big data have their thumbprints all over the modern asset management firm. Like detectives investigating a crime, the practitioner contributors to this book put the latest data science techniques under the microscope. And like any good detective story, much of what is unveiled is at the same time surprising and hiding in plain sight.

Each chapter takes you on a well-guided tour of the development and application of specific AI and big data techniques and brings you up to the minute on how they are being used by asset managers. Given the diverse backgrounds and affiliations of our authors, this book is the perfect companion to start, refine, or plan the next phase of your data science journey.

About the author

Larry Cao, CFA, is senior director of research at CFA Institute. His research interests include multi-asset strategies and fintech, such as artificial intelligence (AI), big data, and blockchain. Mr. Cao has led the development of a series of research publications on fintech and AI in investments, including “FinTech 2017: China, Asia, and Beyond”; “FinTech 2018”; “AI Pioneers in Investment Management”; and “T-Shaped Teams: Organizing to Adopt AI and Big Data at Investment Firms.” His book Multi-Asset Strategies: The Future of Investment Management has been translated into Chinese. Mr. Cao is a frequent speaker at industry conferences on these topics.

During his time pursuing graduate studies at Harvard University and as a visiting scholar at MIT, he co-authored a paper with Nobel Laureate Franco Modigliani, published in the Journal of Economic Literature. Mr. Cao has over 20 years of investment industry experience. Previously, he worked at HSBC as a senior manager for the Asia-Pacific region. Mr. Cao began his career at the People’s Bank of China as a US dollar fixed-income portfolio manager. Later, he worked for Munder Capital Management, managing US and international equity portfolios, and Morningstar/Ibbotson Associates, managing multi-asset investment programs for a global institutional clientele.

Mr. Cao has been interviewed by numerous business media outlets, including Bloomberg, CNN, the Financial Times, the South China Morning Post, and the Wall Street Journal.