Alphacution defines technical leverage as the difference between revenue per employee (RPE) and technology spending per employee. In the parlance of our T-Greeks benchmarking framework, this difference is also known as T-Spread. I stumbled over the chart below - 50 companies in the S&P 500 with the highest RPE rankings for 2016 - recently and thought it would be notable to add to the knowledgebase. Since our modeling and analysis currently focuses exclusively on companies related to the financial services sector, much of what we find in this exhibit provides illuminating context. Source: Craft Clearly, energy and healthcare companies dominate the RPE metric, with 3 companies producing astonishing RPE levels greater than $5 million. Only 3 companies from the Financials sector (2 insurance - Aflac, XL Group; and, 1 exchange - CME Group) make this list. From our own modeling, the highest RPE we have found to date is Virtu Financial - a high-frequency trading firm - with a 2016 RPE of $2.8 million. Among the world's major banking groups, Goldman Sachs [...]
adjusted net trading revenue Aflac AI Aite Group Alan Greenspan Alphabet Alphacution research vision Alphacution Riffs Amazon Apollo Management Apple AQR Capital artifical intelligence artificial intelligence asset management asset managers assets per employee attention economy attention market AUM/e AUM per employee automation average daily revenue analysis AWS Azure BAML Bank of America banks Barclays BATS benchmarking benchmarks Betterment BGC Partners BlackRock Blackstone Bridgewater brokers business process outsourcing capex Carlyle Group Central Banks Chopper Trading Citadel Citi Cloudera CME Group cognitive solutions Cognizant Technology Solutions collaboration collective intellect contextual data contiguous modeling Credit Suisse CSC data automation data fluency data products Dell D E Shaw Deutsche Bank digital attention crisis digital content digital culture digital disruption digital enterprise digital frontier digital platform digital research digital transformation DIKW pyramid Dodd Frank DRW DTCC DXC Technology E*Trade EDS Enterprise IT eVestment exchanges Facebook fake news FANGs FinTech FIS Flow Traders Form ADV GETCO Goldman Sachs Google hardware spending Headcount headcount index headcount segmentation hedge funds Hewlett Packard Enterprise HFT HP HPE HPQ human capital human capital costs human capital leverage human capital leverage benchmark human latency IaaS IBM ICAP IMC Indigenous Productivity Infosys ING Group innovation innovation laboratories Intel intelligence bottlenecks Interactive Brokers Interventionism ITG IT infrastructure costs IT outsourcing IT Services Janet Yellen Jefferies JPMC J P Morgan Jump Trading KCG Kensho Technologies KKR Knight Capital knowledge decay labor arbitrage machine learning Man Group MapR market-making market data market data fees Marty Chavez McKinsey &Co Millennium mission Morgan Stanley Nanex Nasdaq navigational intelligence Netflix Northern Trust Numerix Video Blog Och-Ziff operational agility operational alpha operational analytics operational beta operational leverage operational risk opex Personal Capital Point72 post-trade processing private equity process automation process efficiencies process re-engineering process replacement productivity engines prop shops Q4-2016 quantitative research Quantitative Trading quote stuffing rant RBC relative-value research strategy return on technology Revenue Analysis revenue per employee RGM Advisors Robo-Advisors RPE RPE Analysis Sam Harris SEC smart touch software costs software development Sudoku Puzzle SunGard supply chain management Sympohony Innovate 2017 T-Greeks T-Spread T-VOL Tata Consultancy Services TCO TCO/e technical infrastructure technical leverage technical leverage gap technical signature technology capital benchmark technology debt technology economics technology spending benchmarks technology spending volatility The Context Machine Thomson Reuters Timber Hill trade automation T R Price Two Sigma Two Sigma Investments UBS Vanguard Viking Global Virtu Virtu Financial VIX volatility Waking Up Podcast Webinar Wells Fargo Winton Capital Wolverine Trading XL Group
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