Value investing remains in favor among some of the world’s most renowned investors, although times are changing. While the basic tenets of the investment philosophy remain the same, Baupost’s Seth Klarman views it as a “living organism” that has to change. Technology is playing a major role in how value investing is evolving, but perhaps it won’t change everything.
The number one talked-about technology being used among value investors today is artificial intelligence, but of course, AI isn’t the only technology impacting value investing. In fact, other technologies have been having much larger impacts for far longer.
Cloud computing and data analytics
For example, cloud computing has enabled easier sharing of data, resources and computing power within a firm, slashing costs and reducing strain on their networks and servers.
Additionally, value investors have long been using specialized platforms like S&P Capital IQ Pro or AlphaSense, which provide substantial databases, market screening tools and customizable dashboards that investors can use to do a deep dive into the companies they’re researching and analyzing.
Data analytics also enables investors to visualize complex operational and financial data so that they can spot patterns and trends that might not be obvious in the raw numbers.
Blockchain and AI
Blockchain technology enables firms to securely and transparently store and monitor data and assets. In fact, hedge funds can even use blockchain technology to verify their track records using companies like validityBase, which can prove the legitimacy of algorithms and strategies by creating a live record of the predictions as they’re happening.
In an interview with Hedge Fund Alpha, the creators of validityBase described their technology as creating “a live movie of the data” and then publishing it to a blockchain.
Of course, there’s also AI, which has created lots of hype since generative AI came on the scene. Some hedge funds are gladly using generative AI to generate investor letters.
How ValueAct Capital uses AI
For example, ValueAct said it used AI to write its Q1 2025 letter to investors,
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