How Hedge Funds and Family Offices Use I Know First, and The Performance Behind It

Hedge Fund AI Adoption Is Accelerating chart showing active AI use and generative AI use rising

Summary

  • AI has moved from edge to baseline: active AI use among hedge funds jumped to 46% from 18% in a year, and 95% use generative AI. Frontier models can now place trades through Robinhood, but they remain new and unproven, while I Know First has forecast markets for institutions for over a decade.
  • I Know First runs a self-learning algorithm built on genetic programming and neural networks, forecasting more than 13,500 assets across six horizons, from 3 days to 1 year, with two numbers per asset: a signal for direction and strength, and a predictability score for confidence.
  • Hedge funds and family offices run the same product two ways: a daily forecast that generates and screens ideas, over their own list or the pre-made forecast that surfaces I Know First's top opportunities, and a co-developed systematic strategy on a fixed allocation, rebalanced monthly.
  • The combined strategy has returned 756% since inception on January 29, 2020, against 129.1% for the S&P 500, and three 2026 portfolios show it adding return long and short, in both rising and falling markets.

Current Status of AI Adoption

He Xu  This Current Status of AI Adoption article was written by He Xu – Financial Analyst at I Know First.

Summary:

  • AI adoption is increasing and the benefits are substantial with its widespread application in business.
  • In addition to adopting more basic and advanced practices, businesses are also using cloud computing more effectively and allocating their AI budgets more wisely.
  • Companies take part in a variety of initiatives to mitigate their AI-related risks.

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