4 ms·
No sarcasm intended here: Does it matter in terms of social utility whether these types of predictive models are making predictions of human decisions to buy or
by irln 10y ago
No sarcasm intended here: Does it matter in terms of social utility whether these types of predictive models are making predictions of human decisions to buy or sell a stock versus predictions of AI based decisions to buy or sell a stock?
- lmm 10y agoA model that we understand seems more useful than one that we don't. If the hedge fund is saying "buy company X but not company Y because company Y leases its equipment and that will cost them in the long term" (say), that's notionally more valuable than "buy company X because the computer says so", because other companies can learn the lesson of this and not lease their equipment. In practice given that hedge funds tend to be secretive anyway maybe it makes very little difference.
- huac 10y agoIt's reasonably easy (not trivial, not impossible) to track the trades of hedge funds, since they do have to disclose their transactions. And some guys will even tell you! [1] [2] [3] Why they make their decisions is another question. [1]: https://www.bloomberg.com/gadfly/articles/2016-09-14/herbalife-leave-it-for-icahn-and-ackman https://www.bloomberg.com/gadfly/articles/2016-09-14/herbali... [2]: http://etfdb.com/etfdb-category/hedge-fund/ http://etfdb.com/etfdb-category/hedge-fund/ [3]: https://whalewisdom.com/ https://whalewisdom.com/