Large language models (LLMs) have demonstrated promising performance in various financial applications, though their potential in complex investment strategies remains underexplored. To address this gap, we investigate how LLMs can predict price movements in stock and bond portfolios using economic indicators, enabling portfolio adjustments akin to those employed by institutional investors. Additionally, we explore the impact of incorporating different personas within LLMs, using an ensemble approach to leverage their diverse predictions. Our findings show that LLM-based strategies, especially when combined with the mode ensemble, outperform the buy-and-hold strategy in terms of Sharpe ratio during periods of rising consumer price index (CPI). However, traditional strategies are more effective during declining CPI trends or sharp market downturns. These results suggest that while LLMs can enhance portfolio management, they may require complementary strategies to optimize performance across varying market conditions.

Pagaya Technologies a global technology company delivering artificial intelligence infrastructure for the financial ecosystem, with GIC, one of the world's leading global institutional investors, announced today that they have strengthened their strategic partnership. GIC and Pagaya extended their existing funding agreement earlier this week, by which GIC invests in the Company's financing vehicles, for an additional 3 years on top of the original 5-year term, on the same terms as the existing agreement. Additionally, last week, GIC increased its holding of PGY Class A ordinary shares to approximately 9% of Pagaya's outstanding Class A shares as of March 31, 2023. GIC is one of Pagaya's top shareholders and has supported Pagaya's ability to deliver a comprehensive, one-stop solution for institutional investors to invest at scale in consumer credit and real estate assets originated by more than 25 financial institutions and growing. Pagaya is at the forefront of leveraging AI and advanced analytics to differentiate in a highly competitive environment and both GIC and Pagaya believe that building smarter financial infrastructure leads to better, more inclusive asset selection.

What are the problems that Tradeteq solves for its clients? Tradeteq is a smart technology platform powering global trade investments from end-to-end. Trade finance is arguably the oldest banking product, although also the only one that is not easily accessible for institutional investors. We have the technology to make trade finance investable. For those unfamiliar with trade finance, it may not be immediately obvious why institutional investors should consider putting funds into this asset class, nor indeed why those lending to companies trading goods globally do not simply retain the instruments on their books.

The use of artificial intelligence in asset management is rapidly increasing -- or at least that's what asset managers want you to believe. I've evaluated scores of managers claiming to use AI. Although some are genuine in their adoption, many are guilty of what I call AI-washing -- professing to use AI when in fact they are merely employing traditional quantitative techniques, such as simple linear regressions, that technically qualify as "machine learning." These dubious claims largely target asset owners who are "eager" to invest in AI-driven funds, according to a recent CFA Institute Investor Trust Study. The survey found that 84 percent of institutional investors want to invest in funds that use artificial intelligence and 78 percent "believe that the use of AI in investment decision making will lead to better investor outcomes."

Artificial intelligence and machine learning are not just buzzwords but critical building blocks for software, so much so that automated solutions are fast becoming fashionable. While we are experiencing a great deal of AI disruptions in several industries, the movement is facing a bit of resistance in the investment landscape. Very few asset management companies are ready to fully embrace AI and machine learning, or ML, systems without subjecting them to traditional quant models that have mostly restricted their effectiveness. In this article, we will explore the status of AI in the investment landscape and discuss how institutional investors could get more out of it. The power of advanced AI lies in its apparent capability to thoroughly explore data, find recurring patterns, and make intelligent decisions at a high intensity. If we go by this definition, then there is little or no room for human inputs.

There are few sectors of the stock market that are quite as exciting as the artificial intelligence sector. Eerily reminiscent of many works of science fiction, today's technological innovation has brought us smartphones, televisions, and even homes that talk to you, providing intelligent answers in seemingly no time flat! AI technology is quickly changing the way people do everything from order food to enjoy streaming entertainment, and as adoption of the technology continues, the opportunities in the space are only growing larger. It's no surprise to find intense investor interest in artificial intelligence stocks, but what exactly are the companies they represent doing, and should you be investing in them? Read on to learn more about this fast-evolving sector of the economy and how to go about investing in it.

Sustainability involves the adaptation of today's business model to the dynamic nature of the current digitalized environments. In other words, corporations need to make sure that resources, especially technology, are being used responsibly and efficiently to improve the lives of the present generations and future generations as well as strengthen their relationships with the environment. In 2020, the United Nations estimates an investment in the range of $5 trillion to $7 trillion to achieve the SDGs (Craig 2021). This calls for a broader understanding of the behavior of investors, and how these investments are used towards solving sustainability-related problems such as poverty, environmental degradation, pollution and inequality. Artificial Intelligence (AI) has the potential to address these societal problems including sustainability. The climate crisis and the degradation of the physical environment are complex problems that require the most innovative and advanced solutions.

New York (CNN Business)The machines are officially winning. Investors who've relied on a standard 60/40 portfolio this year have taken a bath as stocks and bonds have tumbled. Even gold, the go-to safe haven in volatile times, is underperforming. But for a small subset of specialized hedge funds known as quants, the chaos of 2022 has unleashed a windfall. While the S&P 500 is down more than 13% this year, quant hedge funds -- which rely on complex mathematical models to make investing decisions -- are up more than 15%, according to HFR, a hedge fund research group.

The Securities and Exchange Commission (SEC) is poised to put a damper on Special Purpose Acquisition Company (SPAC) IPOs and mergers: it deepened its investigation into potential conflicts of interest in SPAC underwriting processes, and brought charges against prominent SPACs. Find below an analytical digest of the AI SPAC's state of affairs. A special purpose acquisition company (SPAC) is a company with no commercial operations that is formed strictly to raise capital through an IPO for the purpose of acquiring an existing company. IPO investors have no idea what company they ultimately will be investing in.) SPACs seek underwriters and institutional investors before offering shares to the public.

MDOTM, a provider in quantitative investment advisory services to institutional investors, and Raiffeisen Capital Management have announced a new strategic partnership. Thanks to this initiative, the range of Raiffeisen Capital Management's sustainable funds will be used by MDOTM to offer to the market socially responsible investment (SRI) solutions that benefit from the efficiency brought by artificial intelligence (AI) technology in portfolio construction. Raiffeisen Capital Management's offering in the sustainable investment segment comprises eight investment funds with different risk/return profiles: Sustainable Balanced, GreenBonds, Diversified Sustainable, Sustainable Solidity, Sustainable Emerging Markets, Sustainable Short Term, Sustainable Momentum and Sustainable Equity. MDOTM is a fintech company that develops investment strategies for financial institutions with the help of AI, machine learning and advanced statistical methods. The startup acts as an advisor to banks, wealth managers, asset management companies, and insurance companies by supporting them in specific areas which require high degree of technological specialisation by providing them with systematic models for investment decision making.