How one of the biggest investors in the world uses AI to move slower, trade less, and make more money
, hoping the technology can help them move quicker, save costs, and gain an edge.
The Norwegian oil fund manages around $1.3 trillion, and says it's the largest single owner in the world's stock markets, with holdings in more than 9,000 companies. In a recent, Jon Egil Strand, a portfolio manager in Equity Trading and Transition, explained how AI is"already changing fundamentally" the way the fund trades.
"So when we evaluated ourselves, and asked the simply question, are we good? Are we really good at doing our jobs here? It was a little inconvenient to realize that, you know what, we're not," Strand says in the video. The tool takes things like valuation, margins, revenue, trading volume, and volatility into account, and gives each stock a score, with the best stocks to buy in green, and the worst in red.Because NBIM will end up buying a bit of everything, it's guaranteed to buy both the stocks in green and the stocks in red. But Strand's team is able to use the AI tool to decide on the timing of each buy, prioritizing buying the stocks in green, and buying the stocks in red a little bit later.
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