Subject: Re: AI report out of Stanford
I am not sure what to make of the fact that the AI analyst averaged a portfolio turnover of 50% per quarter.
The tax hit would be massive, and paid by the mutual fund holders, not the manager.
I wish they had compared a baseline strategy of momentum chasing, which, according to other studies, works for a few months timeline, but not for shorter or longer timelines. What if the AI had ignored the other 169 variables? I suspect the performance would be just as "good".