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Conference nyoss1::market_investing

Title:Market Investing
Moderator:2155::michaud
Created:Thu Jan 23 1992
Last Modified:Thu Jun 05 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:1060
Total number of notes:10477

606.0. "Neural Nets : finds best values in stocks" by NAMSTE::PATEL () Wed Nov 03 1993 16:17

Anybody familliar with Fidelity Stock Selector. 

The fund manager Brad Lewis "really gets its cues from Lewis's sophisticated
software system, which uses neural networks to find the bes values in stock
market"
	from Fortune.

Any comments on the software package.

Rashmi
T.RTitleUserPersonal
Name
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606.1Info of Stock SelectorELIXIR::SPIELMANjerry DTN 241-4470Thu Nov 11 1993 00:5624
    I don't know how you would expect to get info on Brad Lewis' package
    considering its proprietary.
    
    The Stock selector Fund has been doing just great since inception. I
    believe Morningstar rates it very highly. My recollection is that there
    are some positive things said about it in Morningstar writeups which I
    recall seeing sometime between last July and now.  
    
    Some stats for Stock Selector:
       October  - 1.0%
       YTD '93  +14.4
       1992     +15.4   
       Risk     1.04   (1.00 = S&P 500)   To put this in perspective:
                                          In Growth category at FIDO, range
                                          is:      1.55 for Emerging Growth
                                                to 0.88 for Value 
                                          and e.g. 0.96 for Capital Apprec.
    
    Eric Kobren (Fidelity Insight Nov 93 issue) rates it OK to Buy. (The 
    best rating is one up "Buy", one below is Hold).
    However, his recommended buys at this time for Fidelity Growth Funds
    category is VALUE, and SMALL CAP.
    
    Jerry
606.2footnote to .-1ELIXIR::SPIELMANjerry DTN 241-4470Thu Nov 11 1993 00:583
    re: .-1
    
    All the figures given are from Kobren's Fidelity Insight Nov '93.
606.3Featured in WSJ last FallGWEN::LEMIREA marvelous night for a moondance...Thu Nov 11 1993 12:1215
There was an article in the WSJ last fall about Brad Lewis and his neural net 
stock picking.  He runs a neural net software package on a souped-up 486 PC 
that crunches numbers overnight and gives Mr. Lewis a list of recommendations 
in the morning.  I believe Lewis caught the technology bug as a fighter pilot 
with the Air Force.

The article said a large number of parameters about a large number of stocks 
are fed into the application.  The computer then sorts through various 
combinations of factors and historical performance to "learn" how the factors 
correspond to stock performance (sort of dynamic regression analysis, I guess).
Using this new knowledge, the application creates new, complex models for 
forcasting future winners.

The article concluded with a comment from one of Lewis' co-workers; something 
to the effect of "Oh...so _that's_ how he does it!!!"
606.42435::SHAHAmitabh "Leadership DECAF? Yuck!"Thu Nov 11 1993 12:471
	What are the major holdings of the Stock Selector Fund?
606.5ZENDIA::FERGUSONRed XWed Dec 01 1993 17:206
If anyone is still interested, I can probably get FID S.S. major holding.
I've had this fund for a while now, oh, maybe a year or so.  I put in $5k
and today it worth around $6.2k or so;  WSJ says the fund is up about 14.2%.

i also owner fid. low-priced fund which is doing a little bit better then
S.S.  it is up 18.2% according to the WSJ.