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Liquidnet and Abel Noser Pilot Portfolio Manager Profiling Solution

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Trading network Liquidnet and tools provider Abel Noser are piloting a portfolio manager profiling solution designed to help traders understand the preferences and distinct profile of each portfolio manager they work with.

Portfolio Manager Profiling is an analytical model that, when incorporated into Liquidnet’s Virtual High Touch Next Gen algorithm suite, links historical trade and transaction cost analysis (TCA) data with each portfolio manager’s decisions. This is then used to create individual portfolio manager profiles, which are analysed to determine a suggested algorithm trading strategy via Liquidnet’s Algo Ranking Model. The solution is being piloted through Liquidnet’s virtual innovation hub, Liquidnet Labs.

Rob Laible, global head of equity strategy at Liquidnet, says: “A portfolio manager’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.”

Peter Weiler, president at Abel Noser, adds: “By analysing a client’s TCA data, we can discover any persistent patterns that are statistically significant and rank suggested execution strategies that are aligned to a portfolio manager’s preferences.”

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