Hedge funds had a terrible year. Most of them severely underperformed. This will not enhance them to their clients.
The news could get worse as an ETF that is run by AI on IBM's Watson platform beat not only the hedge funds, but the index as a whole.
In the past year, this fund is up 11.81%.
Running 24/7 on IBM Corp.’s Watson platform, the fund culls data on more than 6,000 U.S. public companies each day before picking about 100 of them to own. Of the top 15 holdings that contributed most to AIEQ’s gain, 10 of them are too small to be in the in the S&P 500 Index, a Bloomberg portfolio analysis shows.
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