Tech mergers have increased crowding risks, investors say

Risk USA: Consolidation among vendors means “everyone’s looking at the exact same model”

crowd-of-many-russian-matryoshka-dolls-toys

Rapid consolidation among sellers of risk management systems may be one reason why investors are crowding into the same trades, amplifying market swings and watering down alpha in overbought investments.   

“When I started my career… there were about a dozen different risk platforms,” said Amit Deshpande, head of fixed income quantitative investments and research at T. Rowe Price. “Today there are maybe three, four? There has been so much consolidation in how we measure our risks and our

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here