Evaluating AI-Based Hedge Fund Strategies

On 28 Mar 2017, I gave a presentation at the Battle of the Quants Conference in Frankfurt, Germany on how investors should assess AI-based investment strategies. The contents of the talk formed the basis for the white paper, "Artificial Intelligence Simplified: A Framework for Assessing AI-based Strategies."

This white paper presents a framework for assessing investing/trading strategies that are driven by Artificial Intelligence (AI).

Considerable hype surrounds the technology and that is to be expected given not only its capability today but what might be expected of AI in the future. This environment poses difficulties for investors and allocators who are trying to assess AI-based strategies in the present. Distinguishing hype from reality is the starting point. Then, investors must focus not on the technical aspects of the technology in all its various forms, but on what particular mispricing or inefficiency the strategy exploits, and the way in which AI enables the discovery and capture of such alpha.

Read the white paper here.