Digital Digest: The Latest Tech News – Turing Technology

Editorial Staff

26 October 2023

Turing Technology
Turing Technology, a US firm, has introduced a groundbreaking AI-powered tool called the Stock Picker’s Scorecard. The offering, which gives a real-time view from inside mutual funds, changes how advisors and investors evaluate fund managers' stock-picking abilities.

The business uses its Hercules.ai™ technology that can replicate, in real-time, the holdings of more than 2,000 actively managed US equity mutual funds.

“There are virtually no secrets anymore with Hercules.ai. Fund holdings are laid bare,” Rob Nestor, president of Turing Technology, said. “We now have at least four years of replicated data on 95 per cent of the actively managed US equity universe. We know what the managers are buying and selling, we know their favorite stock picks. Through the Scorecard, advisors and professional investors can now benefit from that knowledge.”

The Scorecard, which is aimed at financial advisors, provides several types of data-driven flags:

-- Poor performance: Funds that cannot achieve even a 20 per cent success rate versus their benchmark trigger a red warning flag.

-- Hidden “closet indexers”: If a manager’s highest conviction stock picks are less than 25 per cent of the assets of the fund, it triggers a yellow warning flag.

-- “Hidden Gems”: Funds with scores in the top two deciles that are smaller than $1 billion in assets earn an emerald flag.