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The Rise Of The Hedge Fund Machines

Machine-based hedge funds are on the rise; in the last two years a third of all hedge fund launches were systematic. Artificial intelligence forms part of the systematic universe, which is being increasingly used by fund managers to make better trading decisions. However, certain risks remain with AI and it still has barriers to break down before it is fully adopted. Data from Preqin shows that in 2016 36% of all launches were systematic and last year 33% were.  While quantitative analysts are able to number crunch and develop non-AI algorithms, AI goes a step further by learning to identify new...