"AI Program Costs Only Half Compared to Employee Salaries"
An Australian hedge fund that achieved high investment returns using artificial intelligence (AI) instead of humans is making headlines.
On the 14th, Yonhap News, citing Bloomberg, reported that the startup hedge fund 'Minotaur Capital,' founded in Sydney, Australia by Armina Rosenberg (37) and Thomas Rice (44), recorded a 13.7% return over six months from August last year to last month by investing in global publicly traded stocks.
This performance more than doubled the 6.7% return of the MSCI All Country World Index (MSCI ACWI) during the same period.
The 'Minotaur Global Opportunities Fund' (MGOF), which invests in global publicly traded stocks, charges a management fee of 1.5% and a performance fee of 20% on profits. The fund's assets under management are expected to reach approximately 50 million Australian dollars by the end of this year.
Minotaur Capital has no analysts. Instead, an AI model replaces the traditional analyst roles. Armina Rosenberg, co-founder of Minotaur Capital, said, "Compared to the salaries paid to hire analysts, the cost of the AI program is about half."
The startup fund's large language model (LLM) analyzes about 5,000 news articles daily and can select specific stocks that it judges have the potential to double within three years or increase tenfold over ten years, producing reports of approximately 2,000 words.
Meanwhile, as AI technology becomes increasingly sophisticated, Minotaur and several other hedge funds are experimenting with using AI to manage assets, but it remains uncertain whether this approach will yield high returns in the long term.
Rosenberg emphasized, "For companies undergoing strategic changes or where there is too much information for people to process, AI-based investing can be a turning point. Now, it is time to decide whether AI-based investing is worth considering."
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