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Funds would not share what they are doing because then others would do the same, narrow spreads and reduce profits for all participants. But you can get a good
by TuringNYC 9y ago
Funds would not share what they are doing because then others would do the same, narrow spreads and reduce profits for all participants. But you can get a good idea of what they might be working on by some of their workers' expertise. Notice how places like RenTech (https://en.wikipedia.org/wiki/Renaissance_Technologies https://en.wikipedia.org/wiki/Renaissance_Technologies and https://www.bloomberg.com/news/articles/2016-11-21/how-renaissance-s-medallion-fund-became-finance-s-blackest-box https://www.bloomberg.com/news/articles/2016-11-21/how-renai...), Two Sigma, and others hire loads of NLP and machine learning academics.
- QML 9y agoPerhaps these newer hedge funds just want to give off the perception that they know what they’re doing — I’m more sure about a company like RenTech since they have been through a recession and market crash, and has still come up net positive. So how much of this is simply the market rising; how much of this is due to chance? If we can remove these confounding factors then we could maybe actually evaluate the efficiency of ML-based hedge funds (or regular ones).
- ben_jones 9y ago"That's my quant". [1]: https://www.youtube.com/watch?v=FoYC_8cutb0 https://www.youtube.com/watch?v=FoYC_8cutb0
- hendzen 9y agoMany quant funds are market neutral. For every dollar long they have a dollar short. Such funds aren’t necessarily benefiting from an upward rise in the market.
- arcanus 9y agoAgreed. Both rentech and two Sigma were at NIPS this week. Probably a good indicator of where some of their interests are.
- sseveran 9y agoAs were Cubist, Citadel, Winton, Optiver, Jump, MAN AHL, Voleon, DE Shaw, Hudson River and PDT. Not sure if I missed anyone.