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.
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Gut feeling
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Rule based trading
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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 ( Unfortunately, this is too long a topic to cover today! )
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.