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Top Traders Unplugged

SI301: The AI Hype within Investing...a Step Too Far? ft. Rob Carver

Jun 22, 2024
Expert Rob Carver discusses buying put options for tail risk, trend following, carry strategies, and the impact of the U.S. election on the economy. He shares skepticism about AI hype, challenges of fee setting, and investor preferences for high-fee managers. The podcast explores the risks and liabilities of AI in asset management, the complexities of performance fees, and the importance of transparency and caution in utilizing AI tools.
01:06:14

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Using AI in trading can lead to overfitting and unreliable results, highlighting liability risks.
  • Investors often complain about high fees but still invest, revealing a challenge in fee alignment.

Deep dives

The Debate on AI in Systematic Trading

Using large language models for AI in systematic trading can lead to overfitting and unreliable results, as demonstrated by a study analyzing patterns in financial data. While AI tools seem advanced, they can produce misleading results if not fully understood, posing a liability risk for firms.

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