Sunday 20 February 2022

#AbuDhabi wealth fund bets on scientific approach using quant experts | Financial Times

Abu Dhabi wealth fund bets on scientific approach using quant experts | Financial Times


Gathered together on a floor of the Abu Dhabi Investment Authority’s 40-storey headquarters, a group of physicists, academics and data experts huddle around whiteboards, scribbling equations and feeding reams of data into state of the art computers. 

Many were lured to Adia, one of the world’s largest sovereign wealth funds, from outside the traditional world of finance — more likely a university campus than an investment bank. But they are all part of a new, more than 50-strong team that the fund believes will be crucial to help it navigate the increasingly complex investment landscape. 

The fund, which is estimated to manage about $700bn, has over the past two years been building a “research and development lab and factory” in the hope that a scientific approach will make it more nimble and better able to identify and take advantage of market anomalies. 

It is one of the more radical shifts in thinking for a fund that has traditionally been considered among the more conservative SWFs, but is adapting in recognition of the impact artificial intelligence and other technological advances will have on investment.

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