This LiveWire markets podcast with Armina Rosenberg is worth a listen if you’re interested in how one fund uses AI in its research process.

Meet Armina Rosenberg: Mike Cannon-Brookes' former PM harnessing AI to outperform the market

Armina Rosenberg and Thomas Rice created Minotaur Capital to outperform the market using their own AI system, Taurient. Their system sounds like a mix of stock screening and research analyst. It processes news and data, writes reports, and recommends stocks based on various criteria. 

One interesting note is that using AI, the team is able to invest in markets they wouldn’t normally explore. For example, the fund has invested in a Japanese company called Chugai Pharmaceutical, which is developing an oral GLP-1 (i.e., Ozempic, but in an oral tablet). The company reports in Japanese, but using AI translation, they are able to access and review company reports translated into English. 

This is still fundamental, value-based investing: AI isn’t buying or selling on technical indicators or other factors. The AI filters and recommends companies based on fundamental prospects and the human team reviews and makes the final investment decision. This is more Peter Lynch than Jim Simons. The AI tools are used to augment the fund managers and their investment approach rather than investing on their own.