From private sectors opening up to access to more unstructured data, Altaf Kassam, Managing Director, Europe Head of Investment Strategy & Research at State Street, discusses the key trends.
Driving the industry forward, Altaf highlights two factors as influential in the future of quant investing: computing power and data access. However, human capital will keep being important to interpret machine outputs and ensure that it is sensible and applicable. Discover more in the interview!
Expanding access to asset classes
Traditionally, quant investing focused on liquid public asset classes such as equities and bonds. However, Altaf notes a significant shift: private equity, private credit, and real estate are now becoming integral to quant strategies. This expansion is largely enabled by advancements in computing power and the ability to process unstructured data. As a result, quant investors can now analyse and incorporate data from previously inaccessible asset classes, opening up new opportunities for diversification and returns.
The rise of mass customisation
Another transformative trend in quant investing is the advent of mass customisation. Historically, investors were limited to flagship funds that required scale to operate effectively. Today, thanks to exponential growth in computing power, customised quant portfolios are becoming a reality. This shift allows investors to tailor portfolios to their specific needs, making quant strategies more accessible to retail clients. Mass customisation is poised to democratise quant investing, bringing sophisticated strategies to a broader audience.
Drivers of the future: Computing, data, and talent
When asked about the factors shaping the future of quant investing, Altaf emphasises three key drivers:
Computing power:
The exponential growth in computational capabilities continues to be a game-changer. Emerging technologies like quantum computing could further revolutionise the field.
Data expansion:
The ability to integrate diverse and unstructured data sources is critical. As quant strategies evolve, the focus will be on processing and utilising these data sets effectively to uncover new insights.
Human capital:
Despite the increasing reliance on machines, human talent remains indispensable. Altaf highlights the importance of skilled professionals who can interpret machine-generated outputs, ensuring they are meaningful and applicable to portfolio construction.
The role of human instinct in a quantitative world
In an era dominated by algorithms and artificial intelligence, the role of human instinct and experience remains a topic of debate. Altaf acknowledges the growing reliance on generative AI and other advanced techniques but firmly believes that the human touch will always be essential. Humans are needed to interpret machine outputs, validate their relevance, and apply them to diverse investment scenarios. While machines may handle the heavy lifting, the nuanced understanding and judgment of human professionals will continue to play a vital role.
Conclusion
As quant investing moves into 2026 and beyond, it is clear that the field is undergoing profound changes. The integration of private asset classes, the rise of mass customisation, and advancements in computing and data processing are reshaping the landscape. At the same time, human capital remains a cornerstone, ensuring that quantitative strategies are both effective and adaptable.
Discover the future of quant finance with leading practitioners and experts at QuantMinds International. Save the date – 16-19 November 2026!
