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BENIGN OVERLORDS. Fears of robots replacing humans in the asset management industry may be overstated. That’s one lesson from a relatively richly valued deal announced on Tuesday to bring artificial intelligence specialist Insig AI onto the London market. It’s being acquired by AIM-listed holding company Catena (CTNA.L) at an equity value of 66 million pounds ($93 million), despite generating just 2.7 million pounds of revenue in its most recent financial year.
Founded by Steve Cracknell and Warren Pearson, who worked together at Goldman Sachs (GS.N), Insig AI’s idea is to sell proprietary tools so that fund managers can benefit from machine learning without having to hire a squadron of data geeks.
It’s a reassuring message for old-school portfolio managers worried about being replaced by an algorithm. Cracknell and Pearson’s thesis is that AI can help fine-tune investment strategies, for example by crunching data on companies’ sustainability reports so that fund managers can pick their own environmentally sound stocks. Investors may end up welcoming rather than fearing their new robot overlords. (By Liam Proud)
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April 21, 2021 at 08:27PM
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Capital Calls: Robots and fund managers can get along - Reuters
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