The firm, with some $5 billion in assets under management, is one of a growing number of funds dedicated to creating the ultimate money machine—AI that can teach itself to beat the market….
So far that hasn’t happened. The irony of investors’ piling into AI is that the technology has for years struggled to crack the actual business of investing. Machines get bamboozled by noisy markets and can be caught off guard by fickle trends, and finance—surprisingly—sometimes lacks the oceans of data that underpin the technology in other domains.
A Eurekahedge index of 12 funds using AI has trailed its broader hedge fund index by about 14 percentage points over the past five years. According to Plexus Investments, an asset manager that tracks the returns of boutique AI funds, only 45% outperform the benchmarks they measure themselves against.
‘Enforcement 40’ for 2020
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