MAthlete and hedge fund manager Jim Simons is a legend in the capital markets, and his bet on artificial intelligence (AI) is one that investors should watch closely.
This is a classic case of smart money tracking. Simons runs Renaissance Technologies, one of the most reputable hedge funds with a successful track record, as well as a family office that has doubled artificial intelligence.
“The investment firm of one of the world’s largest computerized trading fortunes is expanding its holdings in machine learning,” a Bloomberg article reads. Euclidean Capital – the family office of Jim Simons – has invested in at least six companies since the start of 2020 that focus on artificial intelligence, spanning healthcare, customer service and aviation, according to compiled data by Bloomberg. “
Investing in AI is not much of a surprise. Simons has used machine learning to make investment decisions, often forgoing the norm of hiring typical Wall Street guys with financial backgrounds in favor of data scientists who can easily calculate numbers.
“A big difference between Renaissance and other quantitative funds is that their team is made up of scientists, not Wall Street people,” a Towards Data Science article duly notes. “With zero experience in finance, they treat financial data like scientific / textual data that they used to experiment. “
Be smart with AI exposure
The growth of AI sees technology manifesting itself in various industries. Given this exponential growth with the potential for exponential gains, investors in exchange-traded funds (ETFs) can take advantage of this advantage with the ETF Global X Artificial Intelligence and Technology (AIQ).
With its 0.68% expense ratio, AIQ seeks to deliver investment results that generally match the price and return performance of the Indxx Index of Artificial Intelligence and Big Data. The fund invests at least 80% of its total assets in securities of the underlying index, which is designed to track the performance of companies involved in the development and use of artificial intelligence and big data.
AIQ offers investors:
- High growth potential: AIQ enables investors to access high growth potential through companies involved in the development and use of artificial intelligence and big data technologies.
- An unconstrained approach: The composition of AIQ transcends classic sectoral, industrial and geographic classifications by following an emerging theme.
- Effectiveness of ETFs: In a single job, AIQ gives access to dozens of companies exposed to the themes of artificial intelligence and big data.
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