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The first half of the artificial stock pick winners robot

Date:2017-07-21

  While more and more hedge funds are starting to switch to computers instead of manual stock picking, they need to overcome a small hurdle before the computer takes over the industry: the return on investment.

  According to data provider Preqin statistics, the first half of this year, computer-generated investment strategy, that is, jargon called "system strategy" rate of return of 3.17%. In contrast, the traditional discretionary strategy (Discretionary strategies) the rate of return of 5.99%, almost twice the former. The results are calculated after deducting the transaction costs.

  Discretionary strategy to rely on human technology to make investment decisions, is the human technology to promote the hedge fund industry in the first half of the overall rate of return reached 4.87%, the highest since 2009, a new high, although still far below the first half of 2009 16.9%.

  However, hedge fund performance is still lagging behind the US stock market. S & P 500 index rose 8% in the first half. Hedge funds are usually better than the broader market during the bear market, while the US bull market has been for eight years, which can explain why hedge funds in recent years, poor performance.

  In order to retain investors and improve the rate of return, hedge funds have been using new technology, using computer and mathematical models to stock picking, or using large data or machine learning to select and maintain the portfolio.
A recent report by Credit Suisse (15.18, 0.08, 0.53%) indicates that nearly 60% of investors surveyed plan to increase their exposure to quantification strategies over the next three to five years. Only 4% said they would reduce their exposure, and the rest said they would keep the status quo.

  However, from the performance of the first half of view, the computer also need to do better, in order to attract more people's interest.

TypeInfo: Industry News

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