tech
December 26, 2025
'Humans are the most important part' of investing, says a fund manager whose firm makes every call with algorithms
The AI-driven fund has seen higher annual returns across a 10-year period compared with an industry benchmark, per the firm.
TL;DR
- Miro Mitev explored AI in finance as early as 1997, foreseeing its potential for financial forecasting.
- SmartWealth Asset Management, founded by Mitev, uses AI for all investment decisions.
- The firm's fund IVAC aims for $2 billion in assets under management with a 14-15% annualized return target.
- Humans are crucial for selecting training data, inputting variables, building parameters, and tweaking AI models.
- Mitev stresses the importance of trusting the AI model and avoiding intervention once it's created.
- SmartWealth Asset Management has seen a 407.63% gain over 10 years, outperforming the industry benchmark.
- Mitev believes removing human emotion from investing leads to better results.
- AI model mistakes can stem from 'overfitting,' data issues, or model misspecification.
- Rigorous design, validation, and testing are crucial for effective AI systems.
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