TY - JOUR T1 - Multi-Asset Class Trading JF - Trading SP - 59 LP - 64 VL - 2008 IS - 1 AU - James Leman AU - Ravi Manchi Y1 - 2008/09/21 UR - http://guides.pm-research.com/content/2008/1/59.abstract N2 - While the use of multiple-asset classes as part of an overall investment strategy has been around as long as the capital markets have existed, we are entering an intense period of exploration and adoption by a far larger group of asset managers around the globe. In discussing the evolution of multi-asset-class trading, the authors review the key components playing a role in its development in today's and tomorrow's marketplace. Provoked by the demand for more compelling investment returns, those responsible for achieving superior performance saw their opportunity in the emergence of hedge funds and their techniques and strategies. These strategies, fostered by harnessing quantitative techniques to analyze and act upon the mountains of market data generated as well as the continuously expanding stream of products designed by brokers and exchanges, promise to speed the evolution of newer asset classes and products into prominence. Multi-asset-class trading is here to stay as an essential ingredient in most managers' portfolios. Whether driven by alpha detection, asset class diversification, risk management, or pure opportunistic activities, multi-asset-class capabilities will be essential. They will be needed by those who manage money, those who trade on their behalf, the OMS or EMS providers who seek to meet their needs, the quantitatively oriented strategy creators, algorithmic tool designers, brokers and banks, exchanges and market-structure entities, and he underlying clients striving to be sure that all opportunities are detected, explored, and pursued where investment performance can be achieved at an acceptable price. Future managers will need to be mindful of these techniques, since they will affect opportunities in the market. Constant innovation and pursuit of new techniques will persist and accelerate. In this respect the opportunity for innovation would appear to be endless. ER -