Austin Coxhill
Senior Director, Consulting
Austin has over 20 years of experience with investment management Technology at leading investment firms. He has worked across front office & back office leading the development of global enterprise solutions. He has consistently helped teams leverage new technologies to automate, reduce costs and provide new business capabilities.
Prior to Cutter Austin spent time at Hulu/Disney as a Senior TPM leading data analytics initiatives across multiple product groups for the convergence of Disney & Hulu streaming analytics platforms.
From 2007-2020 Austin worked at Western Asset Management, an affiliate manager of Legg Mason with $450BN AUM. Austin held a senior technology leadership role responsible for the strategy, roadmaps and implementation of Enterprise Data, Cloud Migration, Dev Ops and Citizen Development. Prior to 2019 he held various lead roles managing teams responsible for the delivery of solutions for portfolio management, research, trading, portfolio compliance, back-office operations including confirmations, settlements, collateral management, TBA processing and regulatory reporting.
Prior to Western Asset he held the role of Director of IT and Plusfunds group, a Fund of Funds managing $3BN AUM where his team overhauled the technology improving operational efficiencies for NAV validation, Risk reporting & client reporting. Austin previously spent 5 years with Deutsche bank in New York & London on various enterprise technology initiatives including the replacement of legacy global equity settlement solutions, cash management systems and stock lending & borrowing.
Austin holds an HND in Business Information Technology from the University of Central Lancashire (UK)
Matt Mueller
Research Analyst
Matt Mueller brings more than eight years of experience in the financial services industry to his Research Analyst role at Cutter Associates. Prior to joining Cutter in 2022, Matt was an investment performance associate at Cambridge Associates before moving onto an investment operations role at 1919 Investment Counsel, an RIA headquartered in Baltimore, Maryland. At 1919 Matt was involved in every aspect of the back office, from trade support to Security Master to compliance. Most recently, Matt served as a research analyst at the financial publication Angels & Entrepreneurs, which specializes in early-stage companies raising money via Equity Crowdfunding Platforms. Matt was responsible for sourcing the deals, and evaluating the product, market, and investment viability of each company. Matt earned his bachelor’s degree in economics with a minor in business from Gettysburg College.
Arnie Wachs
Principal – Head of Consulting (until 1/31/2025)
Arnie Wachs, Head of Consulting at Cutter Associates, brings extensive business and technical knowledge to the role, with over 30 years of investment management industry experience. Arnie advises clients on their strategic technology direction, data governance practices, trading platforms and practices, portfolio management tools, and operational organization, as well as data management architecture, tools, and practices. He has extensive experience working for investment management firms, financial software vendors, and consulting firms, in roles that included business analyst, developer, system architect, development management, project management, product management, sales, and executive positions. He has a deep understanding of investment management system use and design. He also leads the firm’s Technology and Architecture practice.
Prior to joining Cutter, Arnie worked for ITG, where he led the product management efforts for the development of the next-generation OEMS platform. Prior roles include Head of Equity Systems at BlackRock Solutions, Senior Product Manager at Charles River Development, and Vice President at Fidelity Investments, where he designed and developed the firm’s global trading platforms. Arnie also led efforts at State Street Global Advisors to create an enterprise-wide, cross-asset class security and benchmark master. He holds a Bachelor of Science in physics from Clarkson University.
The following blog post is one in a series of Cutter 2024 Trends, Themes, and Predictions that provides insights into industry challenges and considerations for firms in 2024 and beyond.
Everyone is talking about different Generative AI use cases for investment management. Are you wondering where to start? One area we suggest is with your firm’s software development efforts. Generative Artificial Intelligence (AI) leverages machine learning (ML) techniques to independently generate code by training on extensive datasets that contain existing code and programming languages. By discerning patterns in established code and comprehending programming language principles, Generative AI can autonomously produce new customized code to significantly speed the development effort.
Why the Shift?
Cost: Generative AI can automate various coding tasks, which reduces the need for extensive manual labor typically associated with software development. This minimizes the number of hours billed by external developers, leading to cost savings. Generative AI also allows for scalable solutions, enabling asset management firms to adapt quickly to changing requirements without incurring extra costs for scaling up or down development efforts, as might be the case with outsourcing.
Agility and Customization: Generative AI allows firms to quickly generate tailored code solutions, aligning with their unique business requirements. This eliminates the need for continuous back-and-forth interactions with an outsourced company between each iteration. Instead, companies can adjust the input into the model, instantly obtaining updated code. Additionally, debugging becomes faster as the AI efficiently grasps the program's intent and proposes solutions.
Continuous Learning and Improvement: ML algorithms powering generative AI systems continuously refine their capabilities through iterative learning, ensuring a perpetual evolution of coding standards and practices.
Data Security and Control: Sending proprietary code outside the firm always comes with risk. Concerns over data security and intellectual property protection have prompted firms to re-evaluate outsourcing strategies. By using Generative AI in-house, firms can ensure their code does not leave the building.
Things to Consider
Initial Investment and Integration Challenges: Integrating generative AI into existing workflows requires initial investment in infrastructure, software, and talent, which poses challenges during the transitional phase.
Limitations in Problem-Solving: While generative AI excels in repetitive tasks, complex and novel problems might still require human intervention and creative problem-solving abilities, which may still require some outsourcing.
Ethical and Bias Concerns: Generative AI can inherit biases from the data it’s trained on, potentially leading to biased code or decision-making processes. To mitigate these risks, it’s crucial that firms practice continuous oversight and create strong ethical frameworks.
We expect a shift from outsourced solutions toward integrating generative AI within a firm’s software development will be a significant paradigm change and one that is widely adopted. Despite the challenges, the potential advantages in cost savings, efficiency, customization, and continuous improvement signal a compelling trajectory for the industry. However, it’s crucial that firms carefully navigate the pitfalls to harness the technology’s full potential.
To learn more about this topic, or speak with a research analyst or consultant, contact us at [email protected].