Artificial intelligence (AI) technology, much like the internet, electricity, internal combustion and steam power before it, is spurring a transformation in the global economy. The impact on investment strategy and asset management is just beginning to be felt.
The financial sector is facing fundamental changes.
Every year, the amount of data that can be statistically evaluated for investment decisions doubles. Artificial Intelligence (AI) is already being used successfully in other industries such as consumer goods. Now, for the first time, it is possible to use these technologies cost-effectively in investment management to construct more robust investment strategies from available data. The cutting edge AI technology today is deep learning and big data technology. This enables automated learning to a degree never before seen in history. Modern AI systems can already predict market trends better than humans because they are more impartial.
We use the most advanced artificial intelligence technology not only to identify the best investment rules but also to adapt to market changes.
We use AI to replicate an army of equity analysts who work around the clock. Our AI system scans thousands of stocks to check every day what the best investment opportunities are in the market. The AI system learns continuously, depending on how the markets develop. These stocks are then considered to have the superior risk-return profile for the prevailing market regime.
Hence the methodological use of systematic investment processes and advance technology avoids emotional interference and increases number of independent bets in the portfolio which according to empirical research has historically resulted in higher information ratios.
This systematic approach ensures full transparency in the selection of securities and construction of diversified portfolios. In addition, the rule-based process can ensure repeatable results and thus more consistent alpha.