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April 6, 2025- by Steven Greer
This is an article about how ARK Invest has lost more money than any other hedge fund. Meanwhile, I had a big idea last night.
We have known for decades that hedge funds are a scam. It is not the fault of the portfolio managers, per se. It is simply impossible to make money when the government was printing trillions of dollars, creating a decades-long asset bubble. (Although great investors like me can still short. I made 4000% in 2021 shorting the market.).
We have also seen the rise of the so-called quantitative funds. The concept there is to use computers to be faster and to take away the human irrational emotions. But those are scams as well.
What is going to truly revolutionized investing, and put an entire class of people out of work, is artificial intelligence (“AI”) like Grok. For example, I know the strategy that I used when I was a contrarian investor at the biggest and best Wall Street companies. I also know the capabilities of Grok AI because I use it often. Right now, I believe that AI can reproduce my strategies. If I ran a hedge fund, I would use it to generate ideas for me. I would still have to be the final decision maker though.
AI could do what I used to do, but infinitely faster and better as well. When I was the portfolio manager at Merrill Lynch, I hired a medical doctor who worked at Pfizer to be my analyst. He did a pretty good job, but at the end of the day, he was not doing anything that I could not outsource to India (I did that too.).
AI is perfectly designed for the mathematical model making. However, even the more complex human intelligence component of picking stocks can be done by AI now.
Here is how I would create an AI hedge fund. I would tell it to look for stocks that have a high concentration of investors of a certain type, like stupid hedge funds that follow the herd instead of come up with original ideas. Then, I would have it scour the sell-side research and tell me what and why is the consensus view. Then, I would have it verify whether or not there is real evidence to back up that consensus view (I hear that AlphaSense is doing this now).
Turning over the trading to AI would be superior to the human model too. That would keep the portfolio disciplined.
I also believe that the ONLY way to get Alpha and make money will be from insider trading. How perverted is that? It means that members of Congress will be the best investors because they will continue to trade on inside information, and do so with legal immunity (Other forms of “insider trading” will be like Citadel paying Robinhood for access to trades before they are executed.)
The bottom line is that 90% of the people in the finance sector now will be out of a job in two years, if not MUCH sooner. The only type of Wall Street job that will remain will be the face-to-face jobs, such as investment banking or sales.
We are currently seeing a massive change in the US economy from white collar to the trades. The millions of Washington DC parasites are being fired. White collar jobs are being replaced by AI. When the Finance Bro’s are fired, what will happen to Stamford, Greenwich, and Miami markets?
Why would anyone live in that shithole of NYC?