Destin, Florida, Jan. 25, 2024 (GLOBE NEWSWIRE) — For many people, investing can be a very complicated matter, having to monitor a large number of markets, stocks, and indices and come up with an optimized investing strategy to maximize returns. This is a time- and attention-intensive process that most investors don’t have the bandwidth for, which is why many work with asset managers, whose full-time job is to align all their clients’ investments toward their goals.
However, as markets become larger and more complex, the margin for error is getting smaller. With so many asset managers playing the markets today, all of them are finding ways to gain a technological edge over the competition, allowing them to build the strongest portfolios for their clients.
According to John McHugh, President and Chief Investment Officer of WealthTrust Asset Management, “success in business can be obtained by identifying and exploiting inefficiencies in the competition.” This is the philosophy behind WealthTrust’s adoption of artificial intelligence technology in its tactical investment strategies. These strategies use reactive algorithms to determine the most promising asset classes for investment in real-time.
Founded in 2003, WealthTrust is an experienced portfolio manager designed to partner with advisors to meet their clients’ investment needs. Recently, the company launched two AI-powered investment strategies, the WealthTrust AI Tactical ETF Equity Strategy, and the WealthTrust AI Tactical ETF Fixed Income Strategy. This will be followed by a Tactical Individual Equity Strategy soon, and more strategies are being planned to launch across 2024-2025. These AI strategies are available on multiple turnkey asset management platforms (TAMPs).
The tactical nature of these strategies favors investments in exchange-traded funds (ETFs) or individual equities during upward trends and advocates selling them when the trend reverses. If all equity asset class trends turn negative, the strategy might incorporate alternative investments such as gold or short-term treasuries.
“We believe high net worth individuals should have a part of their assets invested in today’s timely AI investment strategies,” McHugh says. “The AI helps us create a highly personalized and optimized investment strategy for high net worth clients. The technology is not only able to isolate relevant trends from past data, but it can also predict the future to some degree, helping us and clients see possible market moves, spot risks, and adjust strategies to benefit from first mover advantage.”
Studies show that about 94% of a strategy’s performance is attributed to the choice of the best asset classes, rather than stock selection. AI is able to monitor market developments much closer than people can, allowing WealthTrust to react to them faster than the competition. For the past 21 years, WealthTrust has outperformed its investment benchmarks around 65% of the time, well above the industry average. It does this by using robust quantitative analysis to establish a strong buy process that identifies companies whose quarterly earnings will beat their consensus estimates. This also allows it to know exactly when to sell stocks of companies that have a strong possibility of missing their quarterly estimates. Unlike the mega managers, WealthTrust’s size allows it to remain agile and execute trades quickly and efficiently, which can add significant returns to a portfolio, especially during volatile markets.
With the launch of WealthTrust’s AI-powered strategies, McHugh believes that it will greatly augment the company’s market intelligence and investing capabilities, minimizing the chance of buy-and-hold investors from incurring large losses on their portfolios.
John McHugh, President and Chief Investment Officer of WealthTrust Asset Management
“With WealthTrust at the forefront of AI-assisted investing, we envision that our new and upcoming strategies will only improve and continue to positively affect the ever-changing investment landscape,” McHugh says. “We are continuously working to harness the latest financial and investing technologies, as part of our mission to always give our partners and clients an edge over the competition.”
