Grace Capital, an Australian hedge fund, has reported outperformance against the ASX 200 over a one-month experimental period using an artificial intelligence-driven investment strategy.
The fund's chief investment officer, Marcus Vance, described the approach as 'vibe-coded,' leveraging AI to interpret market sentiment and positioning rather than relying solely on traditional fundamental metrics.
The strategy notably included short positions in major resource stocks, including BHP, diverging from the broader market's exposure to commodities.
This contrarian stance contributed to the fund's relative gains during the trial period, highlighting the potential for AI models to identify dislocations in heavily traded sectors.
The results emerge as investor sentiment toward the artificial intelligence rally shows signs of fatigue.
Volatility has surged across tech-heavy indices globally, with some market participants warning of a potential 'superbubble' in AI-related equities.