Amid the empty-vessel-driven "deep-learning", "artificial-intelligence", and "algorithmic" narratives-du-jour, more and more fund managers are jumping on the bandwagon. The latest is Finnish fund manager FIM, who is introducing the first investment fund in the Nordic region, where a self-learning algorithm gets to pick all the stocks.
As Bloomberg reports, targeting returns of 3 percentage points above the MSCI World Index, the FIM Artificial Intelligence fund seeks to tease out patterns even an experienced fund manager may not detect, according to Chief Investment Officer Eelis Hein, who oversees 5.6 billion euros ($6.6 billion) in investments at FIM Asset Management.
“This is the next revolution across society, including in investing,” Hein said in an interview in Helsinki.
“Investors are hugely interested.”
The “Warren in a box” technology, referring to famous value investor Warren Buffett, is a product of more than two years of work by Acatis Investment GmbH and NNaisense SA, a Lugano, Switzerland-based developer of artificial intelligence.
That all sounds very exciting and 'new' and 'tech' and awesome. There's just one thing...
Johnny-5 sucks at stock-picking...
Remember what that AI Fund CEO said... “EquBot AI Technology with Watson has the ability to mimic an army of equity research analysts working around the clock, 365 days a year, while removing human error and bias from the process.”
But hey FIM is not giving up, they drop some more complex words to 'splain away any potential doubts an investor may have...
“AI may detect non-linear patterns that traditional quantitative analysis is not able to identify,” Hein at FIM said.
“It has no emotions: it hasn’t felt fear during a crash nor euphoria when markets are up.”