Art Amador, QuantumStreet AIA chief investment officer told me last quarter that his committee had walked away from a promising AI-driven mandate, not because it underperformed. It backtested well and the returns were impressive. They passed because one member of the investment committee asked a straightforward question that nobody in the room could answer. “If this strategy draws down 15 percent in a quarter, what do we tell our beneficiaries about why it happened?”
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