Liquidnet, the global institutional trading network, and Abel Noser Solutions have announced the pilot of Portfolio Manager Profiling. The model, when incorporated into Liquidnet’s Virtual High Touch™ Next Gen algo suite, links historical trade and TCA data with the portfolio manager’s decisions to create a distinct profile for each participating portfolio manager. These profiles are then factored into determining a suggested algo trading strategy via Liquidnet’s Algo Ranking Model (ARM).
“A portfolio manager’s tendencies have always influenced a trader’s execution strategy but being able to consistently replicate a profile pattern used to be a challenge,” said Peter Weiler, President of Abel Noser Solutions. “But by analyzing a client’s TCA data, we can now discover any persistent patterns that are statistically significant. With Portfolio Manager Profiling, Liquidnet pulls that analysis into its Algo Ranking Model to rank suggested execution strategies that are aligned to that PM’s preferences.”
“Buy-side traders are increasingly turning to smart execution tools like Liquidnet’s Algo Ranking Model to help support their trading decisions,” said Rob Laible, Liquidnet’s Global Head of Equity Strategy. “A PM’s tendencies are often nuanced, but could have a significant impact on the execution approach a trader takes. Being able to use technology to more accurately pinpoint those tendencies is a powerful addition to a trader’s toolkit.”