We now live in a world side-by-side with robots, where artificial intelligence (AI) touches everything—from the movies we watch to the healthcare we receive. Platforms like ChatGPT are thriving, and there's a palpable excitement around AI-related investments. Yet, ironically, Wall Street seems to stumble in truly embracing AI-driven investing. Despite its advancements seemingly everywhere else, in finance, AI is like a star athlete who hasn't yet found the right team.
Bloomberg’s "Can AI Beat the Market? Wall Street Is Desperate to Try" deeply examines this problem. Here's the situation: firms like the Voleon Group have $5 billion in assets under management dedicated to creating the ultimate AI machine that can teach itself to beat the market, yet tangible success proves elusive. Eurekahedge's data shows AI-driven funds lagging behind their traditional counterparts by 14% over five years. Plexus Investments further adds that only 45% of boutique AI funds outperform their set benchmarks.
So, how can we bridge this gap between traditional finance and AI-driven investing? According to FINQ’s CEO, Eldad Tamir,“ By offering FINQ’s novel approach that combines AI's precision with traditional financial expertise.” In addition, while the aforementioned data points reveal a trend of AI-driven funds underperforming, it's worth noting that FINQ's portfolio is outperforming the S&P 500 by over 20% (between August 24, 2022, and October 17, 2023).