Thu, Jul 27, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Eurekahedge: Artificial intelligence hedge funds outperform average global hedge fund

Thursday, March 16, 2017

Benedicte Gravrand, Opalesque Geneva:

Data provider Eurekahedge has looked at the performance of artificial intelligence (AI)/machine learning hedge funds and found that they have outperformed the average global hedge fund for all years excluding 2012 (from 2011 to 2016). Furthermore:

  • Barring 2011 and 2014, returns for AI/machine learning hedge funds have outpaced those for traditional CTA/managed futures strategies, while underperforming systematic trend-following strategies only for the year 2014 when the latter realised strong gains from short energy futures.
  • Over both the five, three and two year annualised period, AI/machine learning hedge funds have outperformed both traditional quants and the average global hedge fund, delivering annualised gains of 7.35%, 9.57% and 10.56% respectively over these periods.
  • AI/machine learning hedge funds have also posted better risk-adjusted returns over the last two and three year annualised periods compared to all peers, with Sharpe ratios of 1.51 and 1.53 over both periods respectively.
  • While returns have been more volatile compared to the average hedge fund, AI/machine learning funds have posted considerably lower annualised volatilities compared with systematic trend following strategies.

Trading models upgrade The growth of quantit......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Hedge fund CQS favors structured credit, Direct lending funds' fading all-weather appeal, Funds hunt for cracks in most-prized US shopping malls[more]

    Hedge fund CQS favors structured credit From BArrons.com: A hedge fund manager that can invest across the investment landscape says in his latest semi annual report this week that he's finding opportunities in structured credit -- particularly the shorter term, floating rate kind. Exampl

  2. Launches - Bitcoin hedge fund launches ethereum-subscribed ICO investment vehicle, Jersey players institutionalize first regulated crypto-currency hedge fund[more]

    Bitcoin hedge fund launches ethereum-subscribed ICO investment vehicle From Coindesk.com: The operators of a regulated, Jersey-based bitcoin hedge fund have officially closed a new $5 million fund aimed at investing in cryptocurrency tokens and initial coin offerings (ICOs). Backed by fun

  3. SWFs - China Wealth fund backs TPG lender as part of U.S. property push[more]

    From Bloomberg.com: China Investment Corp., the sovereign wealth fund that controls $814 billion in assets, is betting on U.S. real estate by investing in a commercial real estate lender formed by the money management firm TPG. In conjunction with last week's initial public offering of TPG RE Financ

  4. Months to minutes: Enigma launch aims to boost crypto hedge fund creation[more]

    From Coindesk.com: What if starting a hedge fund was as easy as downloading an API? A startup incubated at MIT Media Lab is today revealing a product designed with this ease-of-use in mind. Called Catalyst, the first product offering by blockchain startup Enigma aims to trigger nothing short of an e

  5. Seward & Kissel launches new compliance service[more]

    Bailey McCann, Opalesque New York: The law firm that formed the first hedge fund - Seward & Kissel - has launched a new compliance service for asset managers. Seward & Kissel Regulatory Compliance, or SKRC, offers full-scale regulatory compliance consulting solutions provided by the firm's attor