Robo Advisor technology is catching on. A few days ago, the world’s largest hedge fund, Bridgewater Associates announced it is starting a new artificial Intelligence unit. Ray Dalio did not build a centibillion dollar management complex being stupid. One of the former project leads for IBM’s Watson is leading the team. IBM Watson received some attention in 2011 when it beat the two best Jeopardy players of all time in ahttps://www.youtube.com/watch?v=WFR3lOm_xhE. It was not close.
Watson uses an artificial intelligence branch called Deep Learning. The applications to the investment management industry are astonishing for those with a little vision.
We believe investment success will increasingly be determined by who has better technology. The arms race that took place in high frequency trading will be small in comparison.
When venture capitalists ask us who our competition is, we talk about things such as TAMPS (turn Key asset managers),Robo Advisors, Separately Managed Account oriented investment managers and a few select managers having smart beta or patented portfolio weighting technology to compete against diversification Weighting. But when we broaden the horizon more than a few years, I think the competition is those investment management companies who have harnessed the power of artificial intelligence.
While such technologies are generally outside of the domain of firms that cannot finance their own artificial intelligence unit, Gravity is pursuing development agenda to increase the application of artificial intelligence across the optimization of any portfolio strategy. In working with institutions and advisors, we offer the democratization of these investment technologies that can be applied to a customized strategy.
While a deep-learningRoboAdvisor does not yet exist. I am excited to being development.