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New York-based global investment-management firm Neuberger Berman has formed a research partnership with the University of Waterloo to study and develop data-driven techniques for investment management.

The research partnership brings together Neuberger Berman’s Toronto-based quantitative investment professionals from Neuberger Berman Breton Hill with researchers at the university, led by professors George Labahn, Yuying Li, and Peter Forsyth from the David R. Cheriton School of Computer Science in the Faculty of Mathematics.

“We must continue to advance the field of quantitative investing in order to create the most effective strategies for our clients,” said Ray Carroll, chief investment officer of Neuberger Berman Breton Hill. “This research partnership is a great way to extend our relationship with the University of Waterloo, which has consistently provided us with talented graduates as we’ve grown our team.”

The collaboration will take a machine learning approach to solving optimal control problems that arise in portfolio construction, rebalancing and risk management. It will also support PhD and master’s students working on research projects at the school and students at University of Waterloo.

“[This is] an opportunity to apply academic research to complex financial risk management, portfolio construction and rebalancing issues as well as for our students to gain real-world investment experience,” says Charmaine Dean, vice president, university research, University of Waterloo.