Insights from FutureProof 2024: Innovation and Ethical AI in the Investment Management Industry

At Ironwood Investment Management, LLC, we’re always looking to stay ahead of the curve when it comes to industry trends and technological advancements. Brian Collins, our Marketing Lead, recently attended the FutureProof Festival and Conference, which provided valuable insights into the ways AI and innovative tech are rapidly changing our industry. We’d like to share some key takeaways and how they align with our approach at Ironwood.

The AI Revolution in the Investment Management Industry

One of the most prominent themes at FutureProof 2024 was the arrival of AI in the investment management industry. It’s clear that AI is not just a buzzword but a transformative force that’s reshaping how we serve our clients.

But as with any innovation there are unintended or undesirable outcomes that must be avoided. The operational efficiencies that AI can deliver are valuable but the industry must be cognizant of the ethical pitfalls that these new disruptive technologies can create.  

At Ironwood, we’re embracing this change while staying true to our core values. We believe in the power of “ethical AI” – technology that enhances rather than replaces the human touch. This aligns perfectly with our longstanding commitment to combining deep market knowledge with unwavering ethical standards.

Leading the Charge in Ethical AI

The Ironwood Small Cap Core strategy has long been a champion of integrating a values-driven approach into investment management. An ethical approach has been a part of the  DNA of this strategy since its inception in 1999. As new technologies such as AI gain in prominence, we’re proud to be at the forefront of ethical AI adoption in the investment management space. This approach allows us to not just consume AI technology – but actively participate in shaping its development.

Our approach to AI aligns with our overall investment philosophy: we believe in quality, integrity, and long-term thinking. Just as we seek out high-quality companies for our portfolios, we’re committed to using high-quality, ethical AI tools in marketing and client service that enhance our capabilities without compromising our values.

Startups Driving Innovation

The demo day at FutureProof showcased several exciting technologies pushing the boundaries of what’s possible in investment management. Here are a few companies and capabilities that caught our attention:

  • Canopy: An investing platform focusing on tax-individualized investing.
  • Dispatch: A tool for automating client onboarding and data synchronization.
  • FINNY AI: An AI-driven prospecting tool for financial advisors.
  • Jump: An AI Meeting Assistant that streamlines administrative work.

While these innovations are exciting, at Ironwood, we believe in adopting new technologies judiciously. Our focus remains on delivering consistent, long-term results for our clients through our time-tested investment approach, and integrating new technology as it makes sense for our client base and strategy. We select technology advancements that reduce operating costs, spur organizational efficiency, and improve client services all while helping drive fund performance.

Security and AI Integrity

With the rise of AI comes increased concern about data security and the integrity of AI-generated outputs. As firms integrate AI into everything from portfolio optimization to client communication, robust safeguards must be implemented to protect sensitive financial data, while rigorous validation processes are essential to verify the accuracy and reliability of AI-driven decisions.

At Ironwood, we take these concerns seriously: we continue to prioritize the security of our clients’ data and the accuracy of our analyses above all else.

Efficiency and Enhanced Client Services

The race to find efficiencies through AI and other technologies was a hot topic at the conference. Many firms are exploring ways to streamline operations and provide better client services. At Ironwood, we’re always looking for ways to improve, but we do so carefully and thoughtfully.

For instance, we’ve recently started using Dreamwriter, an AI-powered content creation tool, to help us communicate more effectively with our clients and the wider investment community. By leveraging AI in this way, we’re able to share our insights and expertise more efficiently, while ensuring that the content remains true to our voice, values, and brand.

Conclusion

The FutureProof Conference reinforced industry trends that we have been observing around the intersection of human expertise and technological innovation. At Ironwood, we’re excited to be part of this future, leveraging new technologies to enhance our services while staying true to the fundamental principles that have driven our success for over 25 years.

As we move forward, the Ironwood Small Cap Core strategy remains committed to our mission: delivering risk-adjusted returns for our clients by investing in high-quality small cap businesses. With the judicious application of AI and other emerging technologies, we believe we can enhance our processes, manage risk, and create value for our clients in the years to come.

Stay tuned for more updates as we continue to explore the frontiers of ethical AI in the investment management industry.

 

Copyright © 2024 Ironwood Investment Management, LLC | All Rights Reserved.

John Grady

Research & Operations Associate

As Research & Operations Associate, John assists the equity research effort in support of the portfolio managers and works closely with the operations department. Prior to joining the Ironwood team in 2023, John earned his BA in Psychology, from the University of Denver. While studying, John developed several business plans for small businesses in the Denver area for a capstone project for his business minor. Prior to joining Ironwood, John was developing his research skills through an apprenticeship by regularly meeting with management teams, attending investor conferences, and developing investment theses.

Cameron Marshall

Trading & Research Associate

As a Trading & Research Associate, Cameron is responsible for investment portfolio trading and operations as well as conducting equity research in support of the portfolio managers. Prior to joining the Ironwood team in 2022, Cameron earned his BA in Economics, with a minor in Mandarin, from the University of New Hampshire. While studying, Cam held several internships working with investment teams across asset classes in both private and public markets. An active member of his community, Cam has contributed his time and energy to charities including Best Buddies International, Be Positive for CHaD Kids, and Positive Tracks.

Alyssa Wade

Director of Client Relationships

Alyssa Wade is the Director of Client Relationships and assists in the Marketing Department at Ironwood Investment Management, LLC®. Prior to joining Ironwood, Alyssa worked at Boston Technologies and Regan Communications Group. She holds a Bachelor of Arts in Communication with a minor in Education from the University of Massachusetts, Amherst.

Regina Wiedenski

Co-Portfolio Manager
Value Investment Partners (VIP) Strategies

Regina Wiedenski is Co-Portfolio Manager for the VIP strategies at Ironwood Investment Management, LLC®. Ms. Wiedenski has an MS in Management with a concentration in finance from the Sloan School at M.I.T. and a BS from M.I.T. Prior to joining Ironwood to manage VIP portfolios, she was a Portfolio Manager at J.L. Kaplan Associates. Previously she was an equity analyst at Advest, Inc. and had spent nine years as an analyst at Adams, Harkness & Hill covering healthcare, specialty chemical, instrumentation and publishing companies. She began her career as a financial analyst at Morgan Stanley.

Paul Weisman

Co-Portfolio Manager
Value Investment Partners (VIP) Strategies

Paul Weisman is Co-Portfolio Manager for the Value Investment Partners (VIP) strategies at Ironwood Investment Management, LLC®. Mr. Weisman has an MA in Industrial Organization (Applied Microeconomics) from Boston University and a BA from Haverford College. Prior to joining Ironwood as the head of the V.I.P. team in 2009, Mr. Weisman was Chief Investment Officer at J.L. Kaplan Associates which he joined in 1986. From 1983 to 1986 he was an investment analyst at Delphi Management.

Ravi Jain, Ph.D., CFA

Partner

Ravi Jain, Ph.D., CFA is a Partner at Ironwood Investment Management, LLC®. Dr. Jain has a Ph.D. in Finance from the University of Missouri Columbia (doctoral thesis on corporate spinoffs), a Master of Finance and Bachelor of Commerce from the University of Delhi. He is also a Chartered Financial Analyst® (CFA). Dr. Jain is an Associate Professor of Finance at the University of Massachusetts Lowell where his research focuses on capital markets and corporate finance.

Warren Isabelle

Portfolio Manager

Warren Isabelle, CFA is a Portfolio Manager at Ironwood Investment Management, LLC®. Prior to forming Ironwood Investment Management, LLC® in 1997, Warren was the Head of Domestic Equities at Pioneer Management Company and the Portfolio Manager of more than $3 billion in small cap assets including the Pioneer Capital Growth Fund (later renamed Pioneer Mid-Cap Value Fund), Pioneer Small Company Fund and several institutional portfolios. Warren has received national attention for his research efforts and results.  He has also appeared in feature articles in Barron’s, Business Week, Forbes, Fortune, Money and The Wall Street Journal and has appeared on “Wall Street Week with Louis Rukeyser.” Prior to joining Pioneer, Warren was an Analyst at The Hartford Insurance Company.  He earned a BS in Chemistry from Lowell Technological Institute, an MS in Polymer Science and Engineering from the University of Massachusetts, and an MBA in Finance from the Wharton School of the University of Pennsylvania.

Paul Anderson

Executive Managing Partner

Paul Anderson, CFA is Executive Managing Partner of and leads investor relations, business development and management activities for Ironwood and is a member of the management committee.  Paul joined Ironwood in December 2020 after 12 years at Natixis Investment Managers where he developed and led the U.S. institutional distribution group at Natixis Distributors L.P. Over the course of his 30 years in the industry, Paul has held roles in investment research, sales and management.  Paul holds a Bachelor of Arts in Economics from the University of New Hampshire, and an MBA from Vanderbilt University.  He is a member of the Committee on Investor Responsibility at UNH advising the UNH Foundation on sustainable investment practices.

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Shantelle Reidy

Executive Managing Partner
Chief Financial Officer
Chief Compliance Officer

Shantelle Reidy is Executive Managing Partner and the Chief Financial Officer and Chief Compliance Officer for Ironwood Investment Management, LLC®. Shantelle is a member of the management committee and has served Ironwood in various capacities since joining the firm in 1998, including as Executive Director of Trading and Operations from 2001 to 2014. Prior to joining Ironwood, Shantelle was an Investor Relations Analyst at Talbots, Inc. where she conducted research for the company and managed the firm’s communication with investment analysts. Shantelle holds a Bachelor of Arts degree in Economics and Political Science from Boston University and a Master of Business Administration in Marketing and Finance from the Boston University School of Management.

Donald Collins, CFA

Executive Managing Partner
Portfolio Manager

Donald Collins, CFA is an Executive Managing Partner and Portfolio Manager at Ironwood Investment Management, LLC® and is a member of the management committee. Prior to joining Ironwood in 1998, Don was a portfolio manager with Boston Advisors where he managed portfolios for institutions and high net worth clients.  During his tenure at Boston Advisors, Don participated in the management of the Advest Advantage family of mutual funds and managed the Advantage Special Fund.  Don began his career as a Manager for Burgess & Leith.  He earned his BA in Geology from Boston University and studied at the Boston University School of Business.  In addition, Don is the Director and Investment Committee Chairman for the Abelard Foundation, Chairman and Commissioner of Trust Funds for the Town of Lincoln, MA and Director and Chief Financial Officer at Igan Biosciences.

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