{"id":251363,"date":"2021-05-17T07:05:00","date_gmt":"2021-05-17T04:05:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/this-robot-run-fund-loaded-up-on-tesla-because-it-thinks-the-stock-will-soar-its-been-right-before\/"},"modified":"2021-05-17T07:05:00","modified_gmt":"2021-05-17T04:05:00","slug":"this-robot-run-fund-loaded-up-on-tesla-because-it-thinks-the-stock-will-soar-its-been-right-before","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/this-robot-run-fund-loaded-up-on-tesla-because-it-thinks-the-stock-will-soar-its-been-right-before\/","title":{"rendered":"#\n  This robot-run fund loaded up on Tesla because it thinks the stock will soar. It\u2019s been right before."},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6af8183ab0017\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6af8183ab0017\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/this-robot-run-fund-loaded-up-on-tesla-because-it-thinks-the-stock-will-soar-its-been-right-before\/#AMOM_also_bought_shares_in_Facebook_Nvidia_Home_Depot_and_Adobe_at_the_beginning_of_May\" >AMOM also bought shares in Facebook, Nvidia, Home Depot and Adobe at the beginning of May<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/this-robot-run-fund-loaded-up-on-tesla-because-it-thinks-the-stock-will-soar-its-been-right-before\/#Jack_Denton\" >Jack Denton<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  This robot-run fund loaded up on Tesla because it thinks the stock will soar. It\u2019s been right before.<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"AMOM_also_bought_shares_in_Facebook_Nvidia_Home_Depot_and_Adobe_at_the_beginning_of_May\"><\/span>\n  AMOM also bought shares in Facebook, Nvidia, Home Depot and Adobe at the beginning of May<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\">\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000270129\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       An exchange-traded fund driven by artificial intelligence has just loaded up on shares in Tesla \u2014 and it has a history of correctly predicting the stock\u2019s price swings. The electric-vehicle company now makes up 6% of its portfolio, and is the fund\u2019s third-largest holding after online retailer Amazon<br \/>\n        AMZN,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210331248\/composite\" class=\"positive\">+1.94%<\/bg-quote><br \/>\n       and social-media platform <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Facebook<\/a><br \/>\n        FB,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205064656\/composite\" class=\"positive\">+3.50%<\/bg-quote><span>.<\/span>\n      <\/p>\n<p> The Qraft AI-Enhanced U.S. Large Cap Momentum ETF, trading as AMOM<br \/>\n        AMOM,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/212392634\/composite\" class=\"positive\">+2.92%<\/bg-quote><br \/>\n       on the New York Stock Exchange, bought around $1.4 million worth of Tesla<br \/>\n        TSLA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203558040\/composite\" class=\"positive\">+3.16%<\/bg-quote><br \/>\n       shares in the first week of May. The fund has avoided the company for months, since it dumped all its Tesla shares around the time the stock was trading at record highs.<\/p>\n<div class=\"paywall\">\n       AMOM has been listed in New York since May 2019, and has delivered total returns of 4% so far in 2021 and 55% in the past year \u2014 outpacing its benchmark, the S&amp;P 500 Momentum ETF<br \/>\n        SPMO,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209991756\/composite\" class=\"positive\">+2.02%<\/bg-quote><span>,<\/span><br \/>\n       which has returned a comparable 35% since May 2020.<\/p>\n<p>AMOM is an actively managed portfolio driven by artificial intelligence, tracking 50 large-cap U.S. stocks and reweighting its holdings each month. It is based on a momentum strategy, with the AI behind its stock picks capitalizing on the movements of existing market trends to inform the decision to add, remove, or reweight holdings. The artificial intelligence scans the market and uses its predictive power to analyze a wide set of patterns that show stock-market momentum.<\/p>\n<p><strong>Also read:<\/strong> Early Tesla backer and top fund manager attacks Warren Buffett\u2019s strategy. Here\u2019s his investing advice.<\/p>\n<p>The fund is a product of Qraft, a Seoul, South Korea-based fintech group leveraging AI across its investment products, which include three other AI-picked versions of major indexes: a U.S. large cap index<br \/>\n        QRFT,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/212392657\/composite\" class=\"positive\">+1.85%<\/bg-quote><br \/>\n      ; a U.S. large cap dividend index<br \/>\n        HDIV,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/216686729\/composite\" class=\"positive\">+1.14%<\/bg-quote><br \/>\n      ; and a U.S. value index<br \/>\n        NVQ,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/222974128\/composite\" class=\"positive\">+2.53%<\/bg-quote><span>.<\/span>\n      <\/p>\n<p>And one of AMOM\u2019s notable achievements has been correctly anticipating price moves in Tesla\u2019s stock. The fund sold off all of its shares in Tesla at the end of August, before the stock fell 14% in September and a further 10% in October. AMOM bought that dip, reinvesting in Tesla in November, and loaded up on shares until the end of January, at which point Tesla made up 6.7% of its portfolio.<\/p>\n<p>Before the start of February, AMOM sold off its entire Tesla holdings as the stock was near its all-time high. Shares in the EV company fell near 23% from the beginning of February, when the AI decided to sell up, to when it bought the stock again in May.<\/p>\n<p>The AI driving AMOM made recommendations to reorient the fund\u2019s portfolio at the end of April, including reweighting holdings as well as adding new stocks and booting others. The fund was rebalanced on May 5, and Tesla stock has since fallen 13%.<\/p>\n<p>The top five stocks added to AMOM in May besides Tesla include Facebook, with an 8% weighting in the portfolio, as well as home-improvement retailer Home Depot<br \/>\n        HD,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208081807\/composite\" class=\"negative\">-0.55%<\/bg-quote><br \/>\n       with 3.9%, chip group Nvidia<br \/>\n        NVDA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/200467500\/composite\" class=\"positive\">+4.23%<\/bg-quote><br \/>\n       with 3.8%, and software company Adobe<br \/>\n        ADBE,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/200389143\/composite\" class=\"positive\">+2.62%<\/bg-quote><br \/>\n       with 2.9%.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p><strong>Plus: <\/strong>This robot-run fund with a history of predicting Tesla price moves has just made these stock picks<\/p>\n<p>Qraft noted that both Facebook and Tesla\u2019s earnings outperformed analysts\u2019 expectations in the first quarter of 2021.<\/p>\n<p>Since the rebalancing, Facebook stock has slipped 1% and shares in Home Depot dipped more than 2%. Nvidia stock has dropped 3% and Adobe shares are just below flat. But if AMOM is right, there may be a rally coming for all of them.<\/p>\n<p>The entrance of AI-run funds onto Wall Street promised a new high-tech future for investing, though it hasn\u2019t quite lived up to the hype yet. Theoretically, researchers have shown that AI investing strategies <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/use-ai-for-picking-stocks-not-so-fast-11578279960?adobe_mc=MCMID%3D49189099147164614691798547045511944379%7CMCORGID%3DCB68E4BA55144CAA0A4C98A5%2540AdobeOrg%7CTS%3D1621008863\" class=\"icon none\">can beat the market by up to 40% on an annualized basis<\/a>, when tested against historical data.<\/p>\n<p>But Vasant Dhar, a professor at New York University\u2019s Stern School of Business and the founder of machine-learning-based hedge fund SCT Capital Management, argued on MarketWatch in June 2020 that AI-run funds won\u2019t \u201ccrack\u201d the code of the stock market.<\/p>\n<p>Advocating caution, Dhar said that it was difficult for funds underpinned by machine learning to maintain a sustainable edge over markets, which have \u201ca nonstationary and adversarial nature.\u201d He advised investors considering an AI system to ask tough questions, including how likely it is that the AI\u2019s \u201cedge\u201d will persist into the future, and what the inherent uncertainties and range of performance outcomes for the fund are.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Jack Denton\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Jack_Denton\"><\/span>Jack Denton<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-741F-31F7AF894866%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# This robot-run fund loaded up on Tesla because it thinks the stock will soar. It\u2019s been right before. &#8221; AMOM also bought shares in Facebook, Nvidia, Home Depot and Adobe at the beginning of May An exchange-traded fund driven by artificial intelligence has just loaded up on shares in Tesla \u2014 and it has&#8230;<\/p>\n","protected":false},"author":1,"featured_media":251364,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-251363","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/251363","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=251363"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/251363\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/251364"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=251363"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=251363"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=251363"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}