3 questions to MDOTM

Interviewing Federico Mazzorin, Co-Founder & Chief Scientist MDOTM Ltd

Strategy, AI and vision. These are the three main characteristics in which MDOTM is described.
Our partner, founded in 2015 in London, has been the only european fintech selected for the accelerator program Google for Entrepreneurs and among the winners of the Open Innovation Contest of NTT DATA.


Here are the 3 questions we asked Federico Mazzorin, co-founder and Chief Scientist.


How does technology help better comprehend the complexity of financial markets? And which are the strong points of Artificial Intelligence?

The financial markets are the mirror to a world that becomes more complex every day. Just considering the latest esteems by IBM, almost 90% of the data in circulation have been produced only in the past two years. This aspect, especially from a financial point of view, has contributed to changing the habits and investment processes of institutional investors which adopt artificial intelligence today as it has shown to be a highly reliable technology to analyze market data and to identify those opportunities that were unnoticed before. In this way, AI has been helping managers make decisions based on a deeper and more objective understanding of the data resulting in bigger elasticity in adapting to situations that were never seen before, like those we have observed in the past few years. For this reason, we often hear that human intelligence and learning from data are two very complementary approaches: thanks to the models and investment solutions guided by AI, we have overcome the rigidity that has characterized the traditional quantitative approach and today allows us to build portfolios and refine tactical and strategic asset allocation to adapt to the constant evolutions of financial markets with AI.


And technology? What impact do you think it will have on the investment market?

The demand for solutions using artificial intelligence is increasing globally, the latest esteems made by Forrester project 65 billion dollars in investments put up from institutions to bring AI in their processes. For example, in Italy in the last year the market led by AI solutions has grown over 30% as it has been reported in the latest survey conducted by the Artificial Intelligence Observatory at Politecnico di Milano. This way, the digital transition and modernization of investment processes of institutional investors is a change destined to last at least for the next decade, as it represents a strategic investment to meet not only bigger market complexity but also modern clients, more attentive to the theme of portfolio personalisation, sustainability and risk management. In perspective, success is the main driver of artificial intelligence adoption to manage portfolios and it comes from the fact that it contributes to significantly managing emotions and portfolio volatility in a dynamic way, helping managers build and balance portfolios constantly looking for the asset allocation that best reflects the current market regime and the current macroeconomic conditions.


Which are your goals and how do you see your company grow in the short-medium term?


Today MDOTM is among the first companies in the world (only one in Europe) to be able to have an investment and research team of over 60 people divided among our offices in London, Milan and New York which is opening this year. Having been among the first movers in this sector has enabled us to work with several institutional counterparties and to structure our best research process, starting in the meantime several collaborations with important universities and international research centers through out MDOTM Lab network. In 2023 we aim to increase out market share in the USA and Asia and to enlarge the institutional investors’ pool who use Sphere everyday, our artificial intelligence platform designed to support portfolio managers to decide on tactical and strategic asset allocation.

Bio

Federico Mazzorin is the Chief Scientist and Co-founder of MDOTM Ltd., strategic partner of several institutional counterparts in integrating artificial intelligence within investment processes and in developing new solutions such as wealth management, funds and certificates. Federico graduated in Physics with specialization in Material Structure. After graduating, in 2015, he co-founded MDOTM Ltd., world leader in the field that develops AI for institutional investors. Federico is Associate Professor at Universita’ Cattolica di Milano where he teaches ‘Data Analytics for Investments’ and ‘Python for Investments’.

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