1 month ago
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Investment outfit GK Capital Management Limited is touting a new frontier called alpha investing.
Managing Director Kareem Tomlinson says the company is introducing a business model that will allow investors to chart a way forward with greater assurance while leveraging technology.
“We’re seeking to introduce a managed portfolio where we’ll be able to use our expertise and bring it to bear on the management of portfolios for clients. They won’t have to be concerned about tracking various investment instruments like stocks or interest rates and so on. They will leave that discretion to us and free themselves to do other things,” Tomlinson told the Financial Gleaner.
At a forum last Friday, GK Capital did a detailed analysis of the Jamaican and US financial markets, while expounding on various asset classes such as equities, fixed income and mutual funds. GK Capital also gave recommendations for areas of investment.
Deputy CEO of the GK Financial Group, Steven Whittingham, in an examination of the changed investment environment, said there is a massive amount of data that has to be processed to make good decisions. What that spells is the proper leveraging of technology, he said.
“If we have all of this data, and if artificial intelligence allows us to sift through all of this data, will it help us to build better portfolios? Will it help us to make better decisions? Will it create herd mentalities that makes it difficult for people to actually create value over and above a particular hurdle rate in the market?” Whittingham asked, as he probed the idea of using technology for better wealth management.
Strategy, innovation and execution are critical considerations in the current environment, he said.
“Execution, that is where we go and focus on implementing effective investment strategies that protect your capital first and foremost, and generate above-market risk-adjusting returns,” Whittingham added, while noting that he sees a new wave in the Jamaican financial sector.
“If you can talk about the advent of generative AI, will the power of those new technologies allow us to ride this new wave, or is it to change the wave altogether? Is the game changing? If the game is changing, what does that mean for all of us? How should we think about our accounts?” he said.
Whittingham is challenging the notion of how modern balance sheets are read.
He observed that balance sheets, of 40 years ago, were filled with tangible assets such as trucks, machinery, land and equipment.
“Today, those balance sheets are filled with intangible assets, namely, intellectual property; things that are difficult to get your hands around, things that, over the course of a year, can be written down into nothing if technology changes,” Whittingham said.
“Today, the intellectual property that these companies have is very, very difficult to manage and to understand, so we need help,” he added.
As for GK Capital, the company will be launching an AI tool that was developed in-house.
“It will be one of the leading financial resources in our market and we’re ready to launch. When that comes to the market, we’re going to have to make a big deal about it, because I have seen it, I have worked with it, and it is truly amazing,” Whittingham boasted.
English (US) ·