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Grace Lagan’s Vibe-Coded AI Hedge Fund Beats the ASX in Month-Long Experiment

Australian Financial Review

ENRICHED

Details

Date Published
27 June 2026
Priority Score
1
Australian
Yes
Created
28 June 2026, 10:00 pm

Authors (1)

Description

The Grace Capital team is deeply weird, very wild and has a massive bro bias. Somehow, it is outperforming the market, even betting against BHP.

Summary

This experiment highlights the deployment of specialized AI agents in high-stakes financial decision-making, demonstrating how 'vibe-coded' personas can outperform traditional market indexes like the ASX 200. While the focus is on equity markets, the reliance on autonomous algorithmic entities for capital allocation raises questions about financial stability and the systemic risks of AI-driven market volatility. The article underscores the intersection of frontier AI capabilities and commercial finance, reflecting broader trends in Australian algorithmic governance. However, it lacks deep engagement with catastrophic risk mitigation or existential safety frameworks.

Body

Grace LaganMarkets reporterJun 27, 2026 – 5.00am“There are decades where nothing happens, and there are weeks where decades happen.” This is how Marcus Vance, the chief investment officer at Grace Capital, begins his monthly investment update newsletter.Unfortunately, he has developed a habit of talking in trite, exaggerated sayings. Perhaps, this time, it’s appropriate. The Grace Capital Long-Short Australian Equities Fund is up 7.6 per cent in a month, easily beating the S&P/ASX 200 which rose only 1.8 per cent over the same period.Loading...SaveLog in or Subscribe to save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? LoginLicense articleRead MoreSharemarketInvestingActive investingAICSL LimitedBHP GroupGrace LaganMarkets reporterGrace Lagan is a markets reporter at The Australian Financial Review covering equities, currencies, commodities and monetary policy. She holds a first-class honours degree in economics from the University of Sydney, where her thesis examined intergenerational wealth transfers and home ownership. She is completing a law degree with a focus on media and defamation law. Before joining the AFR she spent two years as a paralegal in Nine’s editorial legal team. Email Grace at grace.lagan@afr.comFetching latest articles