Read an interesting article regarding BlackRock robot stock-pickers posting record losses. As we all know, more and more companies are turning to artificial intelligence to help with stock picking. In the , Laurence Fink invested $78 billion in a quant team to distinguish the company from its peers.
Unfortunately for him, the article points out:
At least three of the quant strategies used by BlackRock'shave suffered losses greater than 10 percent in the year through November, according to the client update, a copy of which was seen by Bloomberg. That compares with an average return of 3.6 percent for quant funds, Hedge Fund Research Inc.'s directional quant index shows.
Does this mean the whole AI taking over the hedge fund/is blown out of proportion? What does this mean for BlackRock? Would love to hear your thoughts.