Wednesday, October 4, 2017

Quest for Better Investment Returns Leads to AI

Beating the market is hard. Notoriously hard. A large majority of professional portfolio managers, after deducting their fees, don’t do it. And Warren Buffett — one of the greatest investors ever — famously said regular investors shouldn’t even try: just invest in the S&P 500 index and call it a day. A lot of investors are taking his advice, piling billions each year into passive benchmark funds. This trend is putting pressure on active portfolio management firms to up their game, and they’re increasingly using AI to do it