Mathematician 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 follow closely.
It’s a classic case of following the smart money. Simons runs Renaissance Technologies, one of the most storied hedge funds with a successful track record to boot, and also a family office that doubled down on artificial intelligence.
“The investment firm for one of the world’s biggest computerized trading fortunes is expanding its holdings in machine learning,” a Bloomberg article says. “Euclidean Capital — Jim Simons’s family office — has invested in at least six companies since the start of 2020 that focus on artificial intelligence, spanning health care, customer services and aviation, according to data compiled by Bloomberg.”
The investment in AI is hardly a surprise. Simons has employed the use of machine learning to make investment decisions, often foregoing the norm of hiring typical Wall Street types with financial backgrounds in favor of data scientists who can crunch numbers with ease.
“A big difference between Renaissance and other quant funds is that their team consists of scientists, not Wall Street folks,” a Towards Data Science article duly notes. “With zero finance background, they treat financial data like the scientific/text data they used to experiment on.”
Get Smart With AI Exposure
The growth of AI is seeing the technology manifest itself in a variety of sectors. Given this expansive growth with a potential for exponential gains, exchange traded fund (ETF) investors can capture this upside with the Global X Artificial Intelligence & Technology ETF (AIQ).
With its 0.68% expense ratio, AIQ seeks to provide investment results that correspond generally to the price and yield performance of the Indxx Artificial Intelligence and Big Data Index. The fund invests at least 80% of its total assets in the securities of the underlying index, which is designed to track the performance of companies involved in the development and utilization 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 utilization of artificial intelligence and big data technologies.
- An unconstrained approach: AIQ’s composition transcends classic sector, industry, and geographic classifications by tracking an emerging theme.
- ETF efficiency: In a single trade, AIQ delivers access to dozens of companies with exposure to the artificial intelligence and big data themes.
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