DuLac Capital Advisory took Google Gemini for a Fixed Income Test Drive— Drive Carefully!

Google Gemini would have failed the fixed income portion of the Series 7 by confusing Bond Yields Higher with better performance. DuLac Capital Advisory did a stress test to identify the constraints in using Google Gemini for systematic model creation-- it's not quite ready for prime time, "set it and forget it."

This matters for Institutional Investors as more increasingly incorporate GenAI into developing more automatic investment models, investment due diligence, and routine third party “gut checks.”

If your application of GenAI ends up developing a case of LLM Market Hallucination, clients wont be so happy about GenAI detracting from your portfolio’s information ratio and Jensen’s Alpha.