Ensemble Active Management
30 Pages Posted: 10 Oct 2018
Date Written: September 5, 2018
This White Paper questions the superiority of the traditional Active Management paradigm. Do stand-alone, ‘single-expert’ investment managers or management teams, with well-defined yet rigidly entrenched philosophies and methodologies, deliver optimal results? The conclusion, derived from a database reflecting 30,000 test portfolios and 165 million data points, was that they do not.
A new approach to investment management, referred to as “Ensemble Active Management” and representing the intersection of Artificial Intelligence and traditional Active Management, was proven the superior option.
Keywords: Active Management, Ensemble Method, single-expert system, multi-expert system
JEL Classification: G11, G10
Suggested Citation: Suggested Citation