Showing posts with the label Future of Finance

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The Algorithmic Takeover: Why Traditional Quant Funds Face Extinction

Let’s say you’re handed a puzzle box with millions of tiny, shifting pieces. Some are labeled “market trends,” others “human psychology,” and a few just scream “chaos.” For decades, Wall Street’s sharpest minds tried to solve this puzzle using financial theory, gut instincts, and spreadsheets thicker than a phonebook. Then came Feng Ji, a computer scientist with no finance background, who looked at the box and said, “Why not teach it to solve itself?”   The Algorithmic Takeover: Why Traditional Quant Funds Face Extinction Feng’s company, Baiont, isn’t your typical hedge fund. Imagine a team of 30 people - mostly twentysomethings with gold medals from coding competitions - managing $970 million without ever touching a stock report . They don’t care about quarterly earnings calls, CEO resignations, or whether Elon Musk tweets about dogecoin at 3 a.m. Instead, they’ve built an AI that treats financial markets like a giant game of whack-a-mole : predict where prices pop up next, then...

Beyond Performance: Why Financial Professionals Need AISHE AI

In today's dynamic financial world, artificial intelligence (AI) is transforming the landscape, offering investors and financial professionals new tools and strategies to navigate complex markets.  However, it also raises a crucial question: despite these advancements, why do financial professionals still struggle to fully embrace AI in their decision-making processes? Addressing the Human-AI Divide Researchs sheds light on this challenge, demonstrating that we tend to evaluate machines based solely on their performance. A single prediction error can erode our trust in an AI tool, even if it consistently outperforms humans on average. Conversely, when assessing human advice, we consider factors beyond mere performance, granting leeway even when their advice underperforms. This inherent bias towards human intuition and experience poses a significant hurdle in adopting AI-driven recommendations. Beyond Performance: Why Financial Professionals Need AISHE AI AISHE AI: Bridging the Gap ...