Geneva-based Pictet Asset Management has launched a global equity market-neutral long/short strategy that harnesses next-generation artificial intelligence for stock selection.
The firm has developed a proprietary stock selection model to forecast returns, whereby, instead of using smart or exotic beta, verified data sets are used to analyse equity markets.
The model predicts, with a high degree of precision, the alpha component of a stock.
The strategy offers diversification and absolute returns with no correlation to long-only equities or most alternative investments.
Using AI, the machine learning model efficiently selects stocks by capturing relationships between data over a long history, allowing rigorous back-testing.
Stéphane Daul, Senior Investment Manager, said: “We believe existing quant factor investments offered by the broader industry can have limitations, particularly when changes to the economic regime occur.
“However, our privately-owned status and long-term approach to investing have allowed us to diligently build, train and test machine learning models, using a range of data including fundamentals, analyst sentiment, prices and market activity, that confidently deliver better outcomes for investors.”
The new fund, Pictet TR – Quest AI, is offered as a daily-dealing UCITS strategy and is registered for sale in Austria, Belgium, Cyprus, Denmark, Finland, France, Germany, Greece, Ireland, Liechtenstein, Luxembourg, Netherlands, Norway, Portugal, Spain, Singapore, Sweden, Switzerland and the UK.
