What Type of Companies Were Best Prepared for Remote Work?
categories: Americas, Asia Pacific, Australia, EMEAI, ZHANG Howard, BARRERA Daniel, BONNE George, Factor and Risk Modeling, Performance Analysis, Portfolio Construction and Optimization, Risk Management, COVID-19, Asset Managers (Quant or Fundamental), Asset Owners, Banks, Hedge Funds, Risk Management Analytics, Portfolio Management Analytics, Equities, Multi-Asset Class
COVID-19 disrupted the operating models of many businesses and forced a shift to remote working, digitization and low-contact transactions and services, which we term “Remote Operation Capability” (ROC). Some corporations were better positioned to take advantage of a remote, automated and digitized operating environment. We utilized machine-learning and natural language-processing techniques to build a potential ROC factor that looks at the extent to which a company was more likely to thrive in such an environment. The techniques we present potentially could be leveraged to capture other emerging or long-term themes.