4 ms·

Investing: Is ChatGPT outperforming the top most popular funds in the UK?

12 points by llampx 3y ago

im3w1l 3y ago
> We asked ChatGPT to create a portfolio of stocks from high-quality businesses with criteria taken from the leading 10 funds it is competing against. These include things like low levels of debt, sustained growth in the past and assets that generate an advantage of competitors. This sounds like a bad idea given the knowledge cutoff date, unless you also feed it the relevant data. But would that fit in the prompt?
- 2malaq 3y ago
  It's easy to feed current relevant data to ChatGPT.
  - im3w1l 3y ago
    They asked basically "pick me a bunch of stonks based on 10 criteria". They ended up with 38 stocks. If it's to do any selection at all we need to assume the potential possibilties were at least 100. So now you want text about 10 criteria x 100 stocks into one prompt. You could split it into multiple prompts but that's not what they claimed to have done.
robinsord 3y ago
[dead]
fakedang 3y ago
The hedge fund and investment management industry ready lost the game to machines post 2008. Just look at the successes of quant firms and HFT firms relative to fundamental hedge funds. Or just look at the success of quantitative teams vs qualitative analyst teams.
- hsjqllzlfkf 3y ago
  Can you give us some links so we can look too?
  - fakedang 3y ago
    Sorry, I don't have any links to share, since if I get n links proving my point, there are m links disproving my point, both of which are correct. But I'm an industry insider, having worked in PE before, and even my old firm acquired a small data-science and Ml-oriented firm, inspite of being very traditional and white shoe. Also look at the rise of quant divisions in banks and the shut down and consolidation of traditional Sales and Trading desks over the past 15 years.
    - hsjqllzlfkf 3y ago
      > if I get n links proving my point, there are m links disproving my point, both of which are correct Yes, that does sound very convincing.
pipes 3y ago
"A fund consisting of 38 stocks chosen by ChatGPT has risen 4.93% in the first 8 weeks since it was created by Finder on 6 March 2023." I stopped reading after that. It's hardly amazing news. I can get a bank account that pays 7 percent (I'm in UK).
- killingtime74 3y ago
  It's 4.93% absolute in 8 weeks, not annualized.
- powerapple 3y ago
  which bank account if you don't me asking
  - pipes 3y ago
    https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/ https://www.moneysavingexpert.com/savings/best-regular-savin...
ukuina 3y ago
Zero information about methodology or prompting means there is nothing useful here, nor is there any way to verify veracity.

12 points by llampx 3y ago

> We asked ChatGPT to create a portfolio of stocks from high-quality businesses with criteria taken from the leading 10 funds it is competing against. These include things like low levels of debt, sustained growth in the past and assets that generate an advantage of competitors. This sounds like a bad idea given the knowledge cutoff date, unless you also feed it the relevant data. But would that fit in the prompt?

2malaq 3y ago
It's easy to feed current relevant data to ChatGPT.
- im3w1l 3y ago
  They asked basically "pick me a bunch of stonks based on 10 criteria". They ended up with 38 stocks. If it's to do any selection at all we need to assume the potential possibilties were at least 100. So now you want text about 10 criteria x 100 stocks into one prompt. You could split it into multiple prompts but that's not what they claimed to have done.

robinsord 3y ago

[dead]

fakedang 3y ago

The hedge fund and investment management industry ready lost the game to machines post 2008. Just look at the successes of quant firms and HFT firms relative to fundamental hedge funds. Or just look at the success of quantitative teams vs qualitative analyst teams.

hsjqllzlfkf 3y ago
Can you give us some links so we can look too?
- fakedang 3y ago
  Sorry, I don't have any links to share, since if I get n links proving my point, there are m links disproving my point, both of which are correct. But I'm an industry insider, having worked in PE before, and even my old firm acquired a small data-science and Ml-oriented firm, inspite of being very traditional and white shoe. Also look at the rise of quant divisions in banks and the shut down and consolidation of traditional Sales and Trading desks over the past 15 years.
  - hsjqllzlfkf 3y ago
    > if I get n links proving my point, there are m links disproving my point, both of which are correct Yes, that does sound very convincing.

pipes 3y ago

"A fund consisting of 38 stocks chosen by ChatGPT has risen 4.93% in the first 8 weeks since it was created by Finder on 6 March 2023." I stopped reading after that. It's hardly amazing news. I can get a bank account that pays 7 percent (I'm in UK).

killingtime74 3y ago
It's 4.93% absolute in 8 weeks, not annualized.
powerapple 3y ago
which bank account if you don't me asking
- pipes 3y ago
  https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/ https://www.moneysavingexpert.com/savings/best-regular-savin...

ukuina 3y ago

Zero information about methodology or prompting means there is nothing useful here, nor is there any way to verify veracity.