Qraft Technologies, the co-leader of an AI-driven quant fund, revealed the two stocks that their model is betting the most on at present. In a year where there has been strong interest in artificial intelligence, Qraft’s model has excelled. Their Qraft AI-Enhanced US Large Cap ETF (AMOM) has yielded a 17% increase, surpassing the S&P 500’s 14% returns. Qraft’s models distinguish themselves from those of most other quant shops by being alive. Unlike other models, Qraft’s AI-powered models use self-update techniques to adjust the weighting of variables in real-time. The accomplishment of Qraft’s model leave individual investors and institutions with a difficult task to develop their models for stock picking.
Francis Oh, Qraft’s Asia-Pacific CEO, says that there is value for AI, but it’s a tall order, specifically for individual investors, to develop AI models for stock picking. Outside of investing directly in funds like Qraft’s, Oh suggests one straightforward way for investors to benefit from the power of AI-driven stock picking models is to continually monitor the top stock picks of AI-backed exchange-traded funds. Funds such as the AI Powered Equity ETF (AIEQ) and the BTD Capital Fund (DIP) rely on AI models to choose their holdings.
Currently, Qraft’s momentum fund’s top two holdings are Amazon (AMZN) and Meta (META), and its model has taken profits from Apple (AAPL) and Nvidia (NVDA), which have risen 200% year-to-date and 40% month-to-date, respectively. Although Amazon and Meta were selected by Qraft’s model, Oh believes they are solid fundamental picks.
In the case of Amazon, the stock is deemed a haven as a potential downturn brews. It also benefits from a robust consumer and labor market, according to Oh. Meanwhile, Oh says that Meta’s position in the AI boom places it among the space’s leaders. Additionally, its Meta Quest virtual reality glasses are a better bargain than Apple’s Vision Pro, giving Meta an advantage in market penetration. Nonetheless, Apple’s existence in the virtual reality arena will push both companies to innovate more quickly and improve the glasses’ functional uses.
