The world is drowning in data. In 2010, humanity generated around two zettabytes of information annually.
To clarify, if the number boggles the mind, as it should, a zettabyte is a unit of digital information equal to one trillion gigabytes or 1 000 exabytes.
Here are two useful comparisons that make it easier to picture. If each grain of sand in the world represented one byte of data, a single zettabyte would equal all the grains of sand on all the world’s beaches combined. One zettabyte could store approximately 250 billion DVDs’ worth of movies. Put differently, you’d need over 62 billion four-terabyte hard drives to hold a single zettabyte.
This year, the global total will approach 200 zettabytes. That exponential surge has changed the foundations of modern investing. The challenge is no longer accessing information but how to extract meaning from the noise, to sift the nuggets of value from mountains of digital sand.
This was the theme of the most recent episode of The More You Know podcast. Chetan Ramlall, Head of Quantitative Research for STANLIB Systematic Solutions, discussed how technology is transforming the very DNA of investing. His message is clear: the investor’s edge today lies not in having more information but in learning how to interpret it, structure it, and act on it with discipline.
Ramlall described a landscape that has shifted dramatically over the past two decades. Previously, analysts relied on company financials published perhaps twice a year. Today, data flows constantly and chaotically – from tweets and CEO speeches to earnings calls, analyst revisions, and sentiment signals embedded in language and tone.
These fragments, when harnessed systematically, can offer valuable insights into markets. The challenge is to distinguish genuine signals from the innumerable grains of irrelevant sand.
At the heart of this new discipline are three pillars: fundamentals, sentiment, and macroeconomic context. Fundamentals are the anchor: profitability, valuations, and balance-sheet strength. Sentiment, once a marginal consideration, is now essential: analyst upgrades, political statements, and the subtleties of language all shape investor mood and market reaction. Finally, the macro layer captures geopolitics, interest-rate shifts, and currency movements. Combining these into a structured process is no simple feat, but it is increasingly necessary.
Black swan events add complexity. They are unpredictable, yet portfolios can be built with resilience in mind – neutralising exposure to certain macro risks or balancing bottom-up stock selection with top-down adjustments. No model is perfect, but a systematic approach reduces vulnerability and ensures that decision-making rests on evidence, not emotion.
This is where the human element comes in. Some argue that the rise of quantitative models, machine learning, and artificial intelligence signal the decline of the human portfolio manager.
Ramlall disagrees. Humans remain critical for domain knowledge: the ability to select the right tools, apply them in context, and interpret results with nuance. Machines excel at the specific, but only humans can provide the broader judgment needed to shape strategy. The most powerful approach is not man versus machine but man and machine, working together.
That balance is not easy. Since the advent of generative AI, industries worldwide have struggled to adapt. Sophistication and capital are not evenly spread, and many firms, particularly in SA, must overcome structural constraints to stay competitive. Yet innovation is happening. Local asset managers are building capability, investing in platforms, and training teams to integrate these technologies into everyday processes.
The direction of travel is unmistakable. What may still appear niche today will soon be the norm. Systematic investing – structured, data-rich, and technology-enabled – will become the standard lens through which portfolios will be built and assessed. Those who resist will fall behind.
For investors, the lesson is not to fear disruption but to embrace it. Tools like sentiment analysis and text mining may seem novel, but they are already shaping returns. The challenge is to evolve skills, adopt new methods, and maintain the curiosity needed to keep pace with a world where data doubles every three years.
Ramlall emphasised that there is opportunity alongside the disruption. The future will belong to investors who can blend the strengths of both human insight and machine precision, who can recognise signals in the noise and exert the discipline to act on them. In this future, the edge does not come from having more information, but from knowing how to use it wisely.
About STANLIB Asset Management
STANLIB Asset Management is one of South Africa’s leading investment managers, with more than R550 billion in assets under management as of December 2024. As the institutional asset manager within the Standard Bank Group’s Investment & Asset Management business unit, STANLIB is focused on delivering consistent investment returns. To fulfil this fiduciary duty, it leverages progressive investment strategies and best-in-class, transparent partnerships, including its collaboration with J.P. Morgan Asset Management. This partnership provides clients with more access to global insights and forward-looking strategies.
STANLIB offers a core range of unit trust funds and manages a diverse array of bespoke institutional portfolios across various disciplines and asset classes, including fixed income, multi-asset, listed property, equity, and alternatives.
