Machine Learning and AI: New Report Shows 40% of Hedge Funds Created Last Year Were Systematic

Are the days of fundamental hedge fund management coming to an end? According to a report from Preqin, a company that provides financial industry data, 40 percent of hedge funds created in 2016 were “systematic,” meaning that they rely on computer models and algorithms to make trading decisions.

Established trading firms and startups are starting to explore whether trading techniques that utilize artificial intelligence can help them outsmart traditional traders. Historically, low volatility in the market is making things difficult for fundamental long/short equity managers.

Changing Strategy For A Changing World

“When you look at the volatility of the equity market right now, it is the lowest it has been in 50 years. That is a very difficult market for fundamentally ...

Read more at Benzinga.

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