The Morning Download: Data Scientists' Influence on Asset Management Adds Up

Asset managers are spending tens of millions on data science. The idea is to use lots of data and machine-learning tools in search of trading ideas and blind spots, the Journal reports. "Most of it is at an early stage, and I don't think it's matured yet," says Onur Erzan, a senior partner at consultant McKinsey & Co. "There will be new sources of data and it will help with investment decisions, but the real question is can an asset manager sustain an edge on those kinds of insights." This is how it starts. "Petter Stensland's foray into data began in late 2012 when, as a junk-bond analyst at AllianceBernstein Holding LP, he needed to analyze the prospects of the many oil-and-gas companies emerging in the nation's energy boom," the Journal says.