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AI and Big Data In Investments

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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.

This book is the latest in a series of research initiatives from CFA Institute aimed at equipping practitioners and policymakers with the tools needed to evaluate and incorporate data science with the highest standards. Two precursors to this book will help set the stage for deeper appreciation. They are T-Shaped Teams: Organizing to Adopt AI and Big Data at Investment Firms and AI Pioneers in Investment Management. We’re also creating active learning opportunities, including our recently launched professional learning courses.


Introductory Material
I. Machine Learning and Data Science Applications in Investments
II. Natural Language Understanding, Processing, and Generation: Investment Applications
III. Trading with Machine Learning and Big Data
IV. Chatbot, Knowledge Graphs, and AI Infrastructure


Available Now: Data Science for Investment Professionals Certificate

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Gain practical knowledge of data techniques and machine learning fundamentals and how they are used in the investment process. This certificate is designed to enable investment professionals or those with investment industry knowledge to apply machine learning concepts to real-world investment problems and explain them clearly to a non-expert audience and clients.

About the Author(s)

Larry Cao
Larry Cao CFA

Larry Cao, CFA, is senior director of industry research at CFA Institute. He conducts original research with a focus on investment industry trends and investment expertise. Mr. Cao’s current research interests include multi-asset strategies and fintech. He frequently speaks at industry conferences on these topics and has more than 20 years of experience in the investment industry. Mr. Cao started his career at the People’s Bank of China as a US dollar fixed-income portfolio manager. He has worked at HSBC as senior manager for the Asia-Pacific region; Munder Capital Management, managing US and international equity portfolios; and Morningstar/Ibbotson Associates, managing multi-asset investment programs for a global financial institution clientele. Mr. Cao has been interviewed by a wide range of business media, including Bloomberg, CNN, the Financial Times, South China Morning Post, and the Wall Street Journal. He pursued graduate studies at Harvard University and was a visiting scholar at MIT.