Source facts and context
Shuang Chen, Clemens Sialm and David X. Xu study the growth of AI in asset management. AI hedge funds initially outperformed comparable non-AI funds, but the advantage declined as adoption spread. AI strategies also showed lower return comovement.
PRIME ASI analysis
For Algo Trade AI, data quality, testing discipline and maintaining a research edge through regime change matter more than the AI label itself. The study shows why technology must keep evolving and results must be assessed against an appropriate benchmark.
Barriers, risks and limitations
This is a cross-sectional study of other managers, not Algo Trade AI performance. The working paper may be revised and does not forecast future returns.
Primary source
National Bureau of Economic Research
The Growth and Performance of Artificial Intelligence in Asset Management
Open source materialThis material is educational and informational. It does not constitute an investment recommendation, an offer or any assurance regarding the future performance of Prime ASI S.A. or its portfolio companies.