AI is the future of asset management

Disclosures: qplum LLC is a registered investment adviser.  Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.  Investments involve risk and, unless otherwise stated, are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.

Gaurav Chakravorty

CIO at qplum

"A.I." isn't just a buzzword.

It is a paradigm shift.

  1. Gut feeling

  2. Rule based trading

  3. Now we have A.I. : Learning rules from data and trusting whatever the machine learns!

Why should an institutional investor care about AI?

Lower costs

Higher returns

Costs for high quality investment management have to be lower and ...

It is not possible without A.I.

Why now? 

  • Recent success of data science - High Frequency Trading
  • Since AI has worked so well at tech companies
  • Since the financial crisis, every form of "smart money" has failed
  • We have gotten better at making autonomous systems
  • Because AI itself is new. It is now Deep Learning (long topic!)

Sorting fakers from the makers 

Close your eyes and imagine a hedge fund today ...

Sorting fakers from the makers 

Integrity and ethics. A culture of compliance. "In it for the right reasons."

 

Ability to make money using A.I.

 

Ability to not lose money - risk management

 

Ability to build and manage a machine-learning / technology business.

Asset managers are now tech companies 

Not just the future. It's happening already

Trader positions are a third of 2010 count

Nationwide job postings of traders

(Almost) nobody wants quants

Nationwide job postings of quantitative analysts

FinTech!

Nationwide postings of FinTech jobs

Artificial Intelligence is sky-rocketing

Nationwide postings of AI jobs

Answers to questions you are thinking about -->

... but you need to ask them first

Fees need to be lower

Assets managed globally: $164 trillion +

 

Fees paid by investors : more than $1 trillion a year!

Old quant trades don't work any more

Data Science not Quant is making money

An average investor has done than hedge funds

High Frequency Trading

AI is a minuscule part now

Investing with a trustworthy tool

The tool should look at every aspect of the data.

The tool should be affordable and efficient.

The tool should know what we have learned already.
 


- Benjamin Graham , Towards the science of security analysis,  1952

... and it should keep learning

The answer is ... Deep Learning

Questions?​

 

gchak@qplum.co

Disclosures: qplum LLC is a registered investment adviser.  Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.  Investments involve risk and, unless otherwise stated, are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.

AI is the future of asset management

By qplum

AI is the future of asset management

In this talk at AIM Summit Dubai, Gaurav will talk about why AI is the future of asset management, why are we talking about it now, what has changed, and how can investors separate the fakers from the makers

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