Greyfeather Capital Brings Artificial Intelligence-Based Investing to the Masses

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Greyfeather Capital, an investment firm at the forefront of applying artificial intelligence (AI) technology to securities selection, has announced a plan to expand beyond the limited reach of the alternative investments space. The firm has used its core technology to develop a long-only equities strategy that it will make available to all investors regardless of current wealth or income status.

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Firms that fail to develop some type of AI-based solution are at serious risk of succumbing to stagnation, which poses both a performance and a marketing problem.

Greyfeather Capital, an investment firm at the forefront of applying artificial intelligence (AI) technology to securities selection, has announced a plan to expand beyond the limited reach of the alternative investments space.

Greyfeather is currently operating its AI-based long-short equities strategy with partner capital in a run up to opening its hedge fund operation to the public in September 2017. With its long-short strategy in place, Greyfeather has created a long-only equities strategy intended to bring the advantages of AI to all investors, regardless of current wealth status or income level.

“We’re excited to bring AI technology to traditional investors,” says Greyfeather Capital Chief Operating Officer Jeffrey Payne, “The average person interacts with similar technology each day whenever he or she accepts a Netflix recommendation or uses a virtual assistant such as Siri; we know that younger people expect the advantages of advanced technology. With the vast majority of traditionally managed mutual funds underperforming in recent decades, it just doesn’t make sense to continue to ignore the superior predictive capabilities of AI when buying stocks.”

Greyfeather plans to bring this long-only strategy to market through a sub-advisory partnership with one or more asset management firms. Greyfeather is currently in talks with a large asset management firm to that end, but will continue to accept proposals.

“The sub advisory model makes sense for Greyfeather’s long-only strategy,” explains Greyfeather Capital Founder and Portfolio Manager Matthew Sandretto, “We have spent years developing our Deep Neural Network (DNN) based AI architecture to excel in the areas of classification and prediction – making it perfect for stock selection. While well-established asset management firms often lack an edge in fast-moving technology such as AI, they do have mature business processes and the ability to reach large numbers of investors. Partnering with Greyfeather Capital enables asset managers to acquire a capability that they don’t have in house.”

Not having such a capability is a huge problem, according to Sandretto, “Firms that fail to develop some type of AI-based solution are at serious risk of succumbing to stagnation, which poses both a performance and a marketing problem. In the years to come, an estimated $30 trillion will transfer to millennials – the most educated and technologically savvy generation in history. They will expect asset managers to be using the best technology available to enhance performance and will not hesitate to vote with their feet.”

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Matthew Sandretto

Jeffrey Payne
@greyfeathercap
since: 01/2015
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