CFA Institute Research and Policy Center: Publications·· 1 days agoAI Score54
A veteran former fund manager used AI to test his lifelong investment strategy
I Spent a Career Managing Money, Then I Let an AI Test My Life's Work
AI summary
A former equity strategy partner and independent investment firm operator used AI in retirement to backtest his long-standing personal strategy, which combined Peter Lynch's growth stock selection, Hilary Kramer's undervalued obscure stock selection, and earnings revision discipline. He corrected for survivorship bias, used point-in-time data, calculated pre-fee returns, and compared it against random stock selection from the same investment pool. The results showed that the strategy did not outperform random selection, with ordinary index funds performing better than the strategy.
Source:CFA Institute Research and Policy Center: Publications · rpc.cfainstitute.org
Large Language Model ApplicationsRisk ManagementBacktesting MethodsMemos and Perspectives#Views / Memos#Large Language Model Applications#Backtesting#Risk Management#US Stocks