this post was submitted on 10 Jun 2025
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Using public information and making small tweaks, an alpha-seeking AI fund manager outperformed 93% of mutual fund managers by an average of 600%.

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[–] Zarxrax@lemmy.world 24 points 3 days ago (1 children)

I could care less if it beats someone on data that already happened. Let me know how it does going forward. My guess is that it won't beat an s&p500 index fund.

[–] RedditIsDeddit@lemmy.world 0 points 3 days ago* (last edited 3 days ago) (1 children)

it's not exactly terribly difficult to beat the s&p 500

[–] bluGill@fedia.io 3 points 3 days ago (1 children)

Yet the vast majority fail after you account for expenses.

[–] skip0110@lemmy.zip 18 points 3 days ago (1 children)

It "made" the money based on a backtest. It means nothing.

[–] sqgl@sh.itjust.works 1 points 22 hours ago

Depends on whether the AI is cheating by using data more recent than the trade date.

Will take longer to run it in real time and get meaningful results (I presume).

[–] hendrik@palaver.p3x.de 15 points 3 days ago* (last edited 3 days ago) (1 children)

What kind of AI? An LLM? Because I can see how hindsight would be hugely beneficial for stock trade. And if they used a model with knowledge from 2024 on data on 1990...

[–] doodledup@lemmy.world 4 points 3 days ago

A language model is for language. Zero chance they used an LLM.

[–] RedditIsDeddit@lemmy.world 5 points 3 days ago* (last edited 3 days ago) (1 children)

for what it's worth "AI" has been making trades around the clock for quite a long time now it's just getting better. but it's not the AI that you're thinking of in the modern context like an llm these are very specific logical trading bots.

[–] sem@lemmy.blahaj.zone 1 points 3 days ago

Didn't they crash the market that one time

[–] jlh@lemmy.jlh.name 3 points 3 days ago (1 children)

Can we stop letting chatbots make economic and administrative decisions, thanks

[–] REDACTED@infosec.pub 2 points 3 days ago

What makes you think this was LLM? From reading the article, it sounds like something else.

[–] MCasq_qsaCJ_234@lemmy.zip 2 points 3 days ago

If an AI can emulate Renaissance Technologies' Medallion Fund and do so on a large scale in the future, that would be a great step forward, but only a few would be able to do so.