Similarities in how institutional investors choose to allocate and reallocate portfolio capital and risk introduces emergent phenomenon within markets.

Advances in machine learning and artificial intelligence provide a new lens through which we can view and understand these characteristics. AI analysis of institutional similarities and strategy isomorphism reveals opportunities for some market participants to profit, but also exposes sources of risk, market integrity and instability.

Some instabilities introduced by strategy isomorphism explain market reactions of the earnings and corporate announcements of Meta (Facebook), Credit Suisse, Apple, Microsoft, Netflix, Google and a host of other examples.

The wider effects of strategy isomorphism have significant consequences for corporate issuers, investors, investment banks, stock exchanges and regulators.

‘Strategy Isomorphism’ is the subject of an economics, financial engineering and data science talk by Irithmics CEO, Grant Fuller, at the University of Birmingham on Monday, 7 March.