Could AI make human equity analysts obsolete?

Most people don't realize it's already here and have been for many years, even decades.

There are some secret organizations generally categorized as "capital funds" something or other. They don't advertise, need no directory listing, never want publicity, always avoiding scrutiny. Some are named like an investment firm, but never taking any clients or adding investors. Owners or partners are usually savvy financial people with millions or billions of their own money.

How do I know this?

One of my clients in my business many many years ago was a mere network analyst sworn to secrecy. His job was similar to his peers in the regular tech sector, but he made over 10x the salary and living large in a mini mansion, nice cars, etc. Just way beyond his peers.

The firm? He grudgingly revealed as much as — several of the partners came from exec positions at traditional investment firms (GS, MS, JPM). Branched off privately. Had some insider access not wanting to share. Their particular focus was high-frequency trading.

Yep. Once anybody start using computers for investing, it's no mo' mere "better investment advice." Instead, they go straight for the throat — trading the most lucrative deals directly at the exchanges, and doing so as quickly possible, as often as possible, telling anybody, benefitting only their own funds.

They put all their effort, capital, and time into their system. They can certainly afford it. It's what they do. They generate millions in profits faster than you can imagine. They're beyond venture capitalism. They're on the cutting edge of not just computers and the emerging AI that they're constantly leveraging, but also heavy into trading infrastructure. They need to be literally adjacent to the exchange network to minimize the critical signal latency, etc. They're heavy into policy/political environment, lobbying for tax loopholes, etc.

Advances at universities by AI researchers? They're the first to adapt to their advantage.

Not fiction. Nobody needs to know.

/r/investing Thread