AI-based investment solutions will change the landscape much faster than expected - and the importance of making good human decisions will be amplified.
Loss avoidance and simplicity are highly attractive to the human mind. However, uncertainty is often the source of superior returns and creativity can be a key source of alpha, delivering idiosyncratic outcomes.
The outcome of selecting an active management strategy will likely be greater when both the creativity and predictability of the candidate are considered in equal measure.