This company wants hundreds of AI bots instead of human analysts to give investment ideas
Companies around the world are experimenting with AI, exploring what it can do, how it can be used and whether it can help boost productivity
Companies around the world are experimenting with AI, exploring what it can do, how it can be used and whether it can help boost productivity while cutting costs. One hedge fund has now decided to use AI to analyse stocks and generate investment ideas. Instead of hiring large teams of analysts to study markets and identify opportunities, Magnetar Capital is reportedly preparing to launch a new fund that will rely on hundreds of AI bots to do much of that work. A fund is a pool of money that is collected from investors and then managed by professionals who decide where to invest it. Read Full Story According to a Bloomberg report, Magnetar Capital, the $18 billion hedge fund firm, is planning to launch a new investment fund later this year that will use AI bots to research stocks, generate investment ideas, make recommendations and forecast market trends.
While the AI systems will handle much of the research process, humans will still make the final decisions on buying and selling investments. Traditionally, hedge funds launch new products with teams of analysts carrying out detailed research on companies and sectors. At Magnetar, however, human employees will reportedly focus largely on building, managing and refining the AI systems powering the fund. People familiar with the matter told the publication that the bots are designed to replicate the depth of research and analysis usually provided by large teams of analysts. The bits will scan the investing universe for opportunities, analyse financial data, identify patterns and generate recommendations for portfolio managers to review. The fund has been developed by Trevor Mottl, Magnetar's head of AI Quant, who built the technology behind it. According to the report, the fund will mainly focus on investments that are expected to rise in value and will largely follow a long-term buy-and-hold strategy.
A smaller part of the fund will use AI to spot market opportunities slightly faster than rival investors, helping it react more quickly to changing conditions. The AI system will also help the company to go through huge amounts of information much faster than a person can. Its job will be to spot useful trends, patterns and opportunities that people might overlook, helping the fund find new places to invest. How this system is being built Building a system like this requires a huge amount of computing power. And here, according to the report, the company is using several high-performance Nvidia servers that will run around the clock. They have also created a system that coordinates different AI bots, assigning them specific jobs and helping them work together. The goal of the firm is make the AI operate like a large team of researchers, but with much of the work done by machines instead of people.
