GermanyFinance and insurance2020 – ongoingLaiqon AG (LAIC)
LAIC-ADVISOR AI stock selection for the LF - AI Impact Equity US fund
Laiqon said its AI stock picker lifted a US equity fund 21.72% in 2023 and kept it just ahead of its benchmark in early 2024
Problem
Fund managers pick single stocks from a very large pool of financial, news and sentiment data. Laiqon wanted to test whether a model could do the selection and give a view on how likely its return forecasts were.
Approach
Laiqon's WealthTech unit LAIC built LAIC-ADVISOR, which combines neural networks with Bayesian statistics. It was trained on more than 800 million data points covering financial metrics, valuations, insider transactions, analyst estimates, news and social media sentiment. It forecasts returns and the probability of those returns. The system picks from about 630 large US companies, and the fund held about 170 of them. The fund launched in May 2020 as an AI mixed fund and became a US equity fund on 1 January 2023.
Results
Takeaway
The results are the company's own and cover a short period. A 0.2-point lead over the benchmark after three months is too small to separate from chance.
Categories
- Size
- Small business
- Industry
- Finance and insurance
- Business function
- Finance, risk and legal
- Innovation type
- Product and service innovation
- AI technology
- Predictive analytics and ML
- Adoption
- Built in-house
- Evidence
- Company's own claim
Sources
Source summaries
Laiqon's press release describes how LAIC-ADVISOR selects US stocks for its equity fund. It gives the fund's 2023 return, its year-to-date return against the MSCI USA NR benchmark and the size of the data set. All figures are the company's own.
Full details are in the original sources.
