Fidelity's Bradford Lewis takes aim at indexes with his 'neural network' computer program

Article Abstract:

Bradford Lewis, manager of Fidelity Investment Inc's Fidelity Disciplined Equity Fund, has found a way to out-perform standard indices using neural network software. A neural network is an artificial intelligence program that copies the workings of the human brain. The mutual fund, which invests in the same businesses as the Standard and Poor's 500 stock index (S & P 500), has won over the index by 2.3 to 5.6 percent for three years running and is maintaining its performance in FY 1993. Disciplined Equity regularly out-performs major index funds, such as Vanguard Group's index funds. Index funds aim to match indices such as the S & P 500. Lewis' system sorts through large amounts of data and looks for patterns. Lewis checks with analysts at Fidelity to double-check his results, but sometimes when he buys stock contrary to the computer's advice, he loses money.

Management investment, open-end, Usage, Computer networks, Software, Stockbrokers, Investments, Biography, Neural networks, Mutual funds, Artificial intelligence, Fidelity Investments, Competition, Neural Network, Mutual Fund, Lewis, Bradford

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Kemper, attacking, program trading, dumps four firms

Article Abstract:

Kemper Financial Services Inc will no longer do business with: Morgan Stanley and Co; Bear, Stearns and Co; Kidder, Peabody and Co; and Oppenheimer and Co. The reason is that those companies continue to use program trading. Kemper charges that program trading causes wild swings in the stock market and increases the chances of crashes. Though most large firms stopped program trading after the 1987 stock market crash, most started up again in early 1989. Index arbitrage is the most risky form of program trading, and it amounts to 13.8 percent of the New York Stock Exchange's average daily volume. All four companies Kemper cut off use index arbitrage .

Laws, regulations and rules, Discipline, Securities industry, Bear, Stearns & Company Inc., Morgan Stanley Group Inc., Program trading (Securities), Stock markets, Stock Market, Kemper Financial Services Inc., Oppenheimer and Company Inc., Kidder, Peabody and Company Inc.

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Eight pipelines agree to take part in trial program

Article Abstract:

il and gas leases

Pipe lines, Pipelines, Economic policy, Gas transmission industry, ANR Pipeline Co.

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