At the Hedgeweek Funds of the Future US Summit in New York, Equity Data Science (EDS) led a workshop titled AI-Driven Risk Management: Strengthening Investment Teams in Volatile Markets. The session brought together portfolio managers, risk officers, and technologists to discuss how hedge funds are evolving their risk management frameworks and using artificial intelligence to make faster, smarter investment decisions.
The Evolving Risk Landscape
As volatility continues to reshape markets, risk management has become more than just a defensive function — it’s a strategic differentiator. Workshop participants agreed that today’s environment requires real-time visibility, deeper data integration, and flexibility to navigate constant change.
The discussion highlighted the increasing role of AI in risk management. From surfacing hidden exposures to accelerating research and analytics, AI is helping investment teams identify correlations, streamline data analysis, and reduce manual friction in workflows — enabling faster, more proactive decision-making.
Key Challenges and Opportunities
Across firms, similar challenges emerged:
• Fragmented workflows between research and risk teams leading to data silos
• Difficulty balancing fundamentals with factor models for a more complete view of risk
• Limited visibility into what’s driving portfolio outcomes
• Missed opportunities due to slow, disconnected data processes
Attendees emphasized that modern investment teams need systems that unify qualitative research and quantitative analytics — combining internal models, research notes, factor data, and portfolio exposures into one integrated environment.
Technology in Practice
During the session, EDS CEO and Co-Founder Sandeep Varma demonstrated how EDS’s platform bridges research, risk, and performance into a single, cohesive workflow. The discussion and demo showed how AI-driven analytics can:
- Integrate factor models, performance attribution, and research data into one view
- Enable simulation and optimization directly within risk workflows
- Surface insights that guide both idea generation and portfolio decisions
“AI isn’t replacing human judgment — it’s amplifying it,” said Varma. “By connecting research, risk, and performance data, we’re helping investment teams make faster, more informed decisions with confidence.”
Takeaways
The workshop concluded with a clear message: integrated, AI-powered investment workflows are redefining how hedge funds manage risk and drive performance. As participants shared, bringing risk management, research, and analytics together creates stronger, more adaptive teams — equipped to make better decisions in an unpredictable market.
Learn more about how EDS empowers hedge funds and asset managers to modernize risk and research management.