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Multimodal Gen-AI for Fundamental Investment Research

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  • Lezhi Li
  • Ting-Yu Chang
  • Hai Wang

Abstract

This report outlines a transformative initiative in the financial investment industry, where the conventional decision-making process, laden with labor-intensive tasks such as sifting through voluminous documents, is being reimagined. Leveraging language models, our experiments aim to automate information summarization and investment idea generation. We seek to evaluate the effectiveness of fine-tuning methods on a base model (Llama2) to achieve specific application-level goals, including providing insights into the impact of events on companies and sectors, understanding market condition relationships, generating investor-aligned investment ideas, and formatting results with stock recommendations and detailed explanations. Through state-of-the-art generative modeling techniques, the ultimate objective is to develop an AI agent prototype, liberating human investors from repetitive tasks and allowing a focus on high-level strategic thinking. The project encompasses a diverse corpus dataset, including research reports, investment memos, market news, and extensive time-series market data. We conducted three experiments applying unsupervised and supervised LoRA fine-tuning on the llama2_7b_hf_chat as the base model, as well as instruction fine-tuning on the GPT3.5 model. Statistical and human evaluations both show that the fine-tuned versions perform better in solving text modeling, summarization, reasoning, and finance domain questions, demonstrating a pivotal step towards enhancing decision-making processes in the financial domain. Code implementation for the project can be found on GitHub: https://github.com/Firenze11/finance_lm.

Suggested Citation

  • Lezhi Li & Ting-Yu Chang & Hai Wang, 2023. "Multimodal Gen-AI for Fundamental Investment Research," Papers 2401.06164, arXiv.org.
  • Handle: RePEc:arx:papers:2401.06164
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    References listed on IDEAS

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    1. Shijie Wu & Ozan Irsoy & Steven Lu & Vadim Dabravolski & Mark Dredze & Sebastian Gehrmann & Prabhanjan Kambadur & David Rosenberg & Gideon Mann, 2023. "BloombergGPT: A Large Language Model for Finance," Papers 2303.17564, arXiv.org, revised Dec 2023.
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    Cited by:

    1. Baptiste Lefort & Eric Benhamou & Jean-Jacques Ohana & David Saltiel & Beatrice Guez, 2024. "Optimizing Performance: How Compact Models Match or Exceed GPT's Classification Capabilities through Fine-Tuning," Papers 2409.11408, arXiv.org.
    2. Zhizhuo Kou & Holam Yu & Jingshu Peng & Lei Chen, 2024. "Automate Strategy Finding with LLM in Quant investment," Papers 2409.06289, arXiv.org.

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