Deep Learning Mutual-Fund Risk Assessment and Performance

The ripple effects of the COVID-19 pandemic have increased market volatility and even caused markets to close in some countries. These fluctuations substantially affected mutual funds, leading to fire sales of their assets and SEC scrutiny of their risk management. Investors responded quickly and withdrew more than $40 billion from mutual funds in the first two months of the pandemic. With nearly half of the households in the United States having their pension plans and life savings invested in mutual funds, understanding the risk-taking behavior of mutual funds is thus of prime importance for investors.

For fund managers, the ability … Read more

How to Talk When a Machine is Listening: Corporate Disclosure in the Age of AI

The annual report, like other regulatory filings, is more than a legal requirement; it provides an opportunity for public companies to communicate their financial health, promote their culture and brand, and engage with a full spectrum of stakeholders.  How readers process all this information affects their perception of, and hence participation in, the business in significant ways.  More and more companies are realizing that the target audience for disclosures is no longer just human analysts and investors, but also robots and algorithms that recommend what shares to buy and sell after processing information with machine learning tools and natural language … Read more