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I am curious if they are going to make an AI hedge fund. This is how insurance companies make money. If they can create money without having to pay traders and
by virmundi 10y ago
I am curious if they are going to make an AI hedge fund. This is how insurance companies make money. If they can create money without having to pay traders and analysts, it just might work.
- drglitch 10y agoInsurance companies are _not_ hedge funds. They are also typically quite low margin, volume business. Further, in more common products such as life ins policies, the risk models are pretty heavily regulated on state/federal level. Insurance companies make money on fees and on "using" the cash you're paying (upfront due to amortized payments) for your policies by making low- to mid- risk investments in various - typically low-liquidity - assets. (Source: I create risk management systems for insurance companies)
- virmundi 10y agoFair enough. What I meant is that they will shovel funds into the markets in order to actually make money. The best way to do this is to have a higher risk approach plus no human traders.
- Spooky23 10y agoThat sure sounded great to the people running AIG in 2006!
- virmundi 10y agoWe've come a long way in 10 years. This company was recently discussed on HN https://www.bloomberg.com/news/articles/2017-02-06/silicon-valley-hedge-fund-takes-on-wall-street-with-ai-trader https://www.bloomberg.com/news/articles/2017-02-06/silicon-v...