WealthTrust Asset Management, a seasoned player in portfolio management since its establishment in 2003, has embarked on a new venture aimed at leveraging artificial intelligence (AI) to provide investors with cutting-edge strategies.
In response to the increasing complexity of markets and the growing competition among asset managers, WealthTrust has introduced two AI-powered investment strategies, the WealthTrust AI Tactical ETF Equity Strategy and the WealthTrust AI Tactical ETF Fixed Income Strategy.
These strategies, tailored to adapt to market trends, prioritise investments in exchange-traded funds (ETFs) or individual equities during upward movements and advocate divestment when trends reverse. In cases where all equity asset class trends turn negative, the strategies may incorporate alternative investments such as gold or short-term treasuries.
The decision to implement AI in investment strategies stems from research indicating that a significant portion of a strategy’s performance—about 94%—is influenced by the selection of the best asset classes rather than individual stock picks. AI, with its ability to closely monitor market developments and react swiftly, allows WealthTrust to capitalise on market opportunities faster than traditional methods.
Over the past 21 years, WealthTrust has consistently outperformed its investment benchmarks approximately 65% of the time, surpassing industry averages. This success is attributed to robust quantitative analysis that informs a strong buy process, identifying companies likely to surpass quarterly earnings estimates and signalling when to divest from companies at risk of missing estimates.
WealthTrust Asset Management president and chief investment officer John McHugh said: “With WealthTrust at the forefront of AI-assisted investing, we envision that our new and upcoming strategies will only improve and continue to positively affect the ever-changing investment landscape.
“We are continuously working to harness the latest financial and investing technologies, as part of our mission to always give our partners and clients an edge over the competition.”
Unlike larger asset managers, WealthTrust’s size enables agility and swift execution of trades, particularly advantageous during volatile market conditions. According to McHugh, WealthTrust’s AI-powered strategies will enhance market intelligence and investing capabilities, potentially mitigating significant losses for buy-and-hold investors during market downturns.
As WealthTrust continues to roll out AI-powered strategies, investors can expect enhanced portfolio performance and resilience in navigating dynamic market conditions.
