Artificial Intelligence Mutual Funds


#1

There are plenty of sites and pages out there talking about mutual funds and ai…

There are also posts on this site already about robotics and other stuff,…

In this post I want to talk about investing in ai mutual funds but not the way that you would think…

All Mutual Funds Will Be AI
This weekend, I watched Ray Dalio’s ted talk about the algorithmic programming and it was incredibly enlightening.

He said that the world is not moving to a split between people writing and profiting from AI algorithms and people losing jobs to them. Watching the talk, felt like watching the future in a way - it was absolutely fascinating!

Considering the resources that big modern hedge funds have at their resources, it is only natural that they will start to drift towards ai. This has been happening for a few years, but it has rapidly accelerated in the previous
ten.

Because of this shift, hedge funds will plough their resources into the technology, akin to what Ray Dalio is doing now.

This shift could create a golden age of quant investing, as new innovative hedge funds use unique ai/machine learning based techniques to generate monstrous returns. This climate combined with the general climate of disruption could mean a golden age of quantitative finance!

Whilst many eager investors are looking for hedge funds focusing on machine learning, robotics and ai, I think the opportunity is investing in the hedge funds themselves and the technology they are creating!

Demographics Are Shifting That way
The shift in this direction as well. The computer-powered hedge fund industry now accounts for almost $880bn. of stocks in the market at the moment - up from $408bn. in 2009…

The start-ups are also attracting serious funding. Quantopian, a platform for do it yourself quants and “crowdsourced” hedge funds raised over $250mn to expand their services…

Things are moving towards quantitative hedge funds, rather than finding hedge funds focusing on these topics. Find hedge funds applying them!


#2

There’s more in this ft article, although the article has a paywall!

https://www.ft.com/content/3e8e7b06-55d3-11e6-9664-e0bdc13c3bef


#3

Here are some links to previous articles on this topic!