Hedge fund magnate Paul Tudor Jones has invested in a brace of artificial-intelligence powered “quantitative” hedge funds, underscoring the increasing acceptance that the industry will need to turn more to technology and away from traditional human traders.
The billionaire investor has invested in CargoMetrics, a Boston-based fund backed by Google chairman Eric Schmidt that crunches global shipping data and satellite images to find tradeable patterns, and Numerai, a West Coast “crowdsourced” hedge fund backed by former Renaissance Technologies co-founder Howard Morgan, according to people familiar with the matter. CargoMetrics, Numerai and Mr Tudor Jones’ $10bn Tudor Investment Corporation all declined to comment.
In 2015 the hedge fund manager told his team that “no man is better than a machine, and no machine is better than a man with a machine”, according to a person familiar with the matter. Interest in systematic, algorithmic investing has exploded in recent years, while the appetite for — and performance of — more traditional mutual and hedge funds has waned. The potential for artificial intelligence fields like machine learning to unearth tradable signals in digital data produced around the world has generated particular interest over the past two years.
Mr Tudor Jones has in recent years gone on a hiring spree for mathematicians, programmers and data scientists to turn Tudor into what some analysts term a “quantamental” firm, one that marries quantitative strategies with traditional fundamental analysis. This is the future of investing, according to Savita Subramanian, an analyst at Bank of America Merrill Lynch.
Source: Financial Times
Trader Nikolay Georgiev
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.