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How Technology and Big Data are Changing the Industry and Driving Investment Decisions

How Technology and Big Data are Changing the Industry and Driving Investment Decisions?

The hedge fund sector has seen considerable changes in recent years, with the integration of technology and big data playing a crucial part in its progress. As markets become more complicated and competitive, hedge funds resort to cutting-edge technologies for competitive advantage. From artificial intelligence and machine learning to big data analytics and algorithmic trading, these tools change how hedge funds operate and make investment choices.

This blog will examine the importance of technology and big data in the changing hedge fund sector. We will investigate the influence of these technologies on investment decision-making, risk management, and portfolio performance, as well as the problems and possibilities they bring for hedge funds. We will also discuss one such hedge fund that has been generating extraordinary results owing to its efficient quant models

First, let’s look at the impact of technology and big data on hedge funds.

Impact of Technology and Big Data on Hedge Funds

Impact of Technology and Big Data on Hedge Funds

The influence of technology and big data on hedge funds has been enormous, and the sector will most certainly continue to adapt as new technologies arise. Here are a few points about how technology and big data are influencing hedge funds:

  1. Access to Massive Volumes of Data- Because of technological advancements, hedge fund managers can access massive amounts of data, such as financial statements, news articles, and social media feeds. This has resulted in the emergence of quantitative investing, which includes using algorithms and statistical models to evaluate data and discover investment possibilities.
  2. Sophisticated Investment- Hedge funds have substantially invested in technology, recruiting data scientists and engineers to construct complex investing models and analytics tools. These technologies examine data and uncover patterns that people may not be able to perceive using machine learning and artificial intelligence.
  3. Streamlined Operations- The way hedge funds function has been revolutionized by technology. Cloud computing has made enormous volumes of data simpler to store and retrieve, while automation and machine learning have improved back-office procedures and lowered expenses.
  4. Increased Competition- As high-frequency and algorithmic trading has become popular, hedge funds’ profit margins have shrunk. When more companies embrace these technologies, it becomes increasingly difficult for any one company to acquire an edge.
  5. Cybersecurity Risks- Hedge funds must also negotiate complicated cybersecurity dangers as their use of technology increases their vulnerability to hacking and other assaults.

Let’s have a look at how this technology is helping hedge funds. 

How are Hedge Funds Using Technology?

How are Hedge Funds Using Technology

To obtain a competitive advantage, the hedge fund sector has been at the forefront of embracing new technology and exploiting big data. These are some instances of how big data and technology are being used in the hedge fund industry:

  1. Using Algorithms to their Advantage- Hedge funds utilize algorithms to examine enormous volumes of market data and execute transactions based on established criteria. This enables them to complete transactions faster and more efficiently than human dealers.
  2. Sentiment Analysis- Hedge funds utilize natural language processing (NLP) algorithms to examine news articles, social media posts, and other unstructured data sources to evaluate sentiment towards certain firms or sectors.
  3. Machine Learning Algorithms- These algorithms are used by hedge funds to evaluate massive data sets and uncover patterns and correlations that may be used to influence investing choices.
  4. Consumer Behavior Analysis- Hedge funds employ alternative data sources to get insights into consumer behavior and economic patterns, such as satellite imaging, credit card transactions, and online traffic.
  5. Controlling Risk- Hedge funds employ technology to analyze and manage the risks connected with their assets. They assess possible threats using real-time data feeds and alter their locations accordingly.

The use of technology and big data in the hedge fund sector is becoming increasingly significant since it helps organizations to make better-educated investment decisions and obtain a competitive advantage in the market.

But some challenges are faced by hedge funds, and every new era comes with hesitation and discomfort. Next, let’s discuss some challenges faced by hedge funds in this technological era.

Technological Challenges Faced by Hedge Funds

Technological Challenges Faced by Hedge Funds

Hedge funds have experienced all sorts of obstacles since their inception, and now artificial intelligence has introduced a completely new obstacle. 

As a result, the following are some of the challenges that hedge funds face.

  1. Cybersecurity Risks- Increasing reliance on digital systems and technological advances have made hedge funds more vulnerable to cyber attacks, which can result in financial losses and reputational damage.
  2. Implementation Costs- Implementing new technology can be expensive, and smaller hedge funds may be unable to keep up with larger firms if they do not adapt quickly.
  3. Lack of Technical Expertise– Hedge fund managers and investors may lack the technical skills required to comprehend and appraise emerging technologies, which would significantly influence their investments, making informed technology investments difficult.
  4. Regulatory Compliance- Hedge funds must guarantee that their use of technology and extensive data use conforms with regulatory standards, which may be complicated and time-consuming to manage.

Technology could be a helping hand, but on the other hand, it could be destructive too. The rising use of technology in the hedge fund sector has created all these issues that one must address to preserve investor trust and provide profits.

In the final section, let us look at a hedge fund that has been making use of its highly intelligent quant algorithms to generate exceptional results for its clientele. 

The Bottom Line 


The future of hedge funds looks brilliant, and it’s all owing to technological and big data marvels. The days of old-school investment methods relying on gut instincts and hunches are over. Hedge fund managers now use algorithms, machine learning, and other data sources to get unparalleled insights into market patterns, consumer behavior, and economic indicators. Now hedge funds are not just regular funds, it’s a form of technology that is changing day and night, and all are in the hustle to get technically upgraded. While technological advancements might have certain challenges, they are inevitable for anything that’s so groundbreaking. 

One such hedge fund is Secvolt. With high-frequency trading and capitalizing on market opportunities, Secvolt is blooming in the technological era. Be it its highly advanced quant models or effective investment strategies, this US-based hedge fund has been breaking all the records. Secvolt generated an exceptional 262.10% return on investment in the year 2022 and continues to serve its clients the best. It is a perfect example of how an investment alternative is using a combination of technology & human brains to create nothing but excellence!

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Don’t just dream of wealth; achieve it with Secvolt. Schedule a call today for personalized guidance on your investment strategy and join the ultra-successful.

Ready to unlock your wealth’s truest potential & cherish affluence?

Secvolt, our hedge fund, sets the bar high with a record-breaking performance of 262% returns in 2022. With the brilliance of our highly advanced quant models and the efficiency of our risk mitigation protocols, we are yet to see a loss!

We’re the perfect ally to help you succeed financially and build the lasting legacy you have always aspired for.

Get in touch today. YOUR LEGACY AWAITS YOU…

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Ashish Verma

Ashish Verma is the founder and CTO of Secvolt, with close to 10 years of experience in the IT industry. He has been the technical backbone of the company and has worked tirelessly to make the technical infrastructure robust. He is a passionate entrepreneur who generates solutions that have the potential to bring change.

In order to ease the client’s interaction with Secvolt, he has strived to develop the business’s technological foundation and establish a user-friendly platform. Ashish has also contributed substantially to smoothening the company’s administration and ensuring that there are no lacunae in the broad structure of the organization. 

Early Years

Coming from a middle-class family, he was aware of the problems that people faced while using technology. He sought to create something that was simple to use yet had a powerful effect. As he studied computer science, he became eager to offer a solution to real issues. He began his professional career at Amdocs, where he gained expertise in client management while catering to more than 20 clients. Later, he moved to Citicorp, where he had exposure to the investment industry. His time at Amdocs and Citi enabled him to produce high-standard, efficient, and scalable technical infrastructure.

He left corporate jobs for his startup because he was passionate about working on the concept of a smart city platform. He expanded the concept internationally and even collaborated with Global Dignity-Kuwait. Things didn’t work out for him the first time. He states, “My failures didn’t stop me from experimenting and trying new things.” He rose from the ashes like a phoenix and founded FewerClicks, an End to End IT solution company.

He worked on the creation of Solster Finance, a decentralized financial platform based on the Solana blockchain. He created this platform single-handedly which has helped the team raise a $1M investment and a revenue of more than $5M within 6 months of launching. 

He has previously worked on many blockchain technologies and cryptocurrency ventures, which include Decentralized Finance Applications (Defi), Decentralized Applications (Dapps), File Contracts (SIA, record-keeper), Smart Contracts (rust, solidity), and NFT Development. His experience and effective communication have helped many team members understand Secvolt effectively and the underlying technology it is powered by.

He possesses the ideal combination of strategic thinking and excellent business insight. He is responsible for formulating technical aspects of the company’s strategy to guarantee alignment with business objectives. With his drive to experiment with new technologies, he has helped Secvolt achieve a competitive edge. Being in charge, Ashish never holds back in encouraging the different departments to make profitable use of technology, helping to grow as an unstoppable team at Secvolt!

Hanif Shaikh

Hanif Shaikh is the founder and CMO of Secvolt, with over 8 years of experience in the industry. He plays a crucial role when it comes to the growth of Secvolt. Since the beginning, he has acted as a mentor for each and every employee of the company, and he makes an effort to be accessible to his staff anytime they need him. 

Hanif first entered the Blockchain and Crypto world in 2016, and nothing has stopped him since. He views blockchain as a transparent platform that provides authority and accountability back to the people. He consistently believes that “overcommunication is better than miscommunication.” He has lived by this motto with his staff, clients, and networks.

Early Years

Hailing from Gujrat, a state in India, he is following his dream to contribute to making this world a better place. In the process, he has struggled, made some mistakes, and learned lessons from those mistakes to achieve success in life. His entrepreneurial attitude dates back to his childhood when he learned from his father’s business and aspired to have it all. He came from a humble background and had ambitions to succeed in life.

He has developed two successful businesses from scratch, and in the process, he has inspired young people to start their own businesses. He was an integral part of the Quora Mumbai Meetups and helped it become a great success in a short period of time. Later, he began organizing meetups to raise awareness about blockchain, cryptocurrencies, and their applications. He also shared his knowledge of ICOs, highlighted reputable ICOs, and established a small cryptocurrency community on WhatsApp groups.

He chose to go on a Blockchain Tour in India in 2019 and met some fascinating people. Throughout his journey, he has been able to build an extensive and robust network that has aided Secvolt’s growth. Because of his expertise and understanding of the Crypto Industry, he has been featured on several news channels and has advised the youth on the subject.

He is in charge of the company’s marketing operations and is responsible for developing its marketing strategy and vision. He oversees a group of passionate marketing professionals and plans promotional strategies with the goal of making  Secvolt a global brand. 

He is a perfect blend of a practical attitude and innovative business acumen. He believes in the ability of individuals to perform exceptionally well when given an environment to experiment and explore their passions; a culture that he has built at Secvolt.

Divakar Choudhary

Divakar Choudhary is the founder and CEO of Secvolt who has been trading for more than six years now. He started the business in 2018 with the conviction that if anybody could dominate the market, it was him. He poured all of himself into the business and turned Secvolt into a market-beating machine.

Divakar developed the fundamental quant models that perform risk management and capture alpha using his skills from the previous organization and his time spent in the market. In order to make the system effective, he backtested risk mitigation algorithms and worked on them for more than 4 years to produce results.

Early Years

He began his crypto journey in 2013 after getting his first gaming Laptop and melded in with the Blockchain community like sunbeams on the ocean. He created many YouTube channels at the age of 15 and businesses by the time he was 17. Technology has always piqued Divakar’s interest. He endeavored and succeeded at freelancing in his effort to achieve financial independence. However, he soon realized that freelancing would always keep him in the rat race, and the only way out would be to build a machine yielding generational wealth.

Soon, he started trading using his own capital but suffered a loss in the market. He says, “95% of people lose money & the rest 5% make money from the loss of those 95%.” He then began working on an effective technique to be included in this 5% after losing part of his own assets during the early stages of trading. He began evaluating quant strategies using statistical models.

With his methodology, he once produced a 20% ROI in a single month. With the zeal of creating something exceptional, he borrowed money from friends and family and generated decent returns for them using primitive quant models. Month after month, the system’s efficiency and the competence of the man behind it allowed for excellent market returns.

In the beginning, Divakar worked on his laptop for over 18 hours. It took every ounce of his energy as he executed about 530+ deals daily for 4 years to create this company from the ground up. In 2021, he increased his volume by 827%, trading a total of $52 million and hitting a single account.

In his words-

“What does becoming “THAT” GUY mean to you? Who did you need when you were young? Be that person!”

He is a perfect example of someone who followed his passion and made a fortune from it! He dreamt of creating generational wealth as a youngster, envisioned it as an adult, and is now making it a reality with Secvolt!