Plotinus Asset Management firm, a US CFTC registered company and a US National Futures Association member, has issued a new whitepaper. It talks about how artificial intelligence offers investment specialists the ability to make an independent assessment of market conditions without the frailties of human decision-making. This implies that the institutional investors are all set to inject new strategies into their longstanding techniques.

CJ Finnegan, a pioneer in deploying artificial intelligence to complement passive investment strategies, is the whitepaper author. His company takes advantage of advanced technologies on a real-time basis for those looking to outperform an extensive index of US stocks through a Cayman-based fund for interested investors.

The whitepaper talks about Informational Dissonance and Artificial Intelligence: Using AI to Harness a Metric of Contemporary Society fuses headline news-flow to the asset-management industry. Finnegan argues, “Over the past year, both the pandemic and the US presidential election have created dissonance between perceived public newsworthiness and actual public interest. Multi-dimensional analysis of the associated trading patterns enables us to exploit this gap for the benefit of investors.”

Finnegan continues, “With portfolio managers desperately searching for yield, AI can be used to create truly innovative investment strategies, potentially achieving sustained outperformance. Traditionally, the industry has simply used technology to better financial engineer what someone else has already done. We now have a new playing field.”

According to Finnegan, the US economy’s fundamental challenges pave the way for an ideal framework to deploy these investment strategies. “At our firm, we find solace in the rigor afforded by intensive use of artificial intelligence. Too many professionals are focused on the euphoria of market gyrations.”

“The sort of elaborate sentiment analysis we have seen is a bit like a cat chasing its own tail. On the surface, this may appear to validate the role of passive investing. The real edge in this setting, though, is the ability to use AI to cut through extreme patterns because of its yield-generating capability,” emphasizes Finnegan.