AllianceBernstein uses AI to sidestep ‘growth trap’

Random forest model aims to sort success stories like Amazon and Netflix from fast-growth losers

MIKI Yoshihito

It’s one of finance’s nagging anomalies. In study after study quants have shown that high-growth companies tend to persistently underperform those that expand at a more conservative pace. The so-called asset growth effect has never been fully explained, and is viewed with suspicion by non-quant growth managers.

“The problem is that when I tell my growth manager, ‘You shouldn’t be buying this company because it’s growing its assets at an exceptionally high rate,’ they are just going to dismiss

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: