Abstract
If you were to ask a discretionary investment fund manager to draw a Venn diagram of the set notation where digitalization meets discretionary investing, many would not show the sets as overlapping. Moreover, they believe that the investment world is bifurcated and the discretionary managers are independent of the quantitative. I would argue that not only are the two sets converging but that the quantitative managers pose an existential threat to the discretionary managers, or perhaps will ‘Pac-Man’-style consume the discretionary managers.
In this paper, we will demonstrate how the ‘old school’ managers are under siege by quantitative managers by presenting the top-10 reasons discretionary investors tell me they are impervious to digitalisation, and refute them one by one.