Thu, Nov 12, 2026
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge funds express conviction and questions around applying AI to the investment process

Monday, January 15, 2018

Komfie Manalo, Opalesque Asia:

Humans will not step out of the way and let the machine drive the entire decision process, nor will at some point everything be fully turned over to a machine - at least not within the current generation. That is the belief of Scott Billington, co-founder of Covenant Capital Management.

Speaking at the latest Opalesque 2017 Chicago Roundtable, Scott said that a scenario wherein everything is fully controlled by machines will not happen in our generation. Although he said there is a wide gap in perception between the older generation and the millennials regarding the use of technology.

He explained, "There is an ease with which younger people deal with machines because as digital natives they have been much more intimate with technology in their lives than our generation." However, he added that the fundamental questions we should be asking are if machines could eventually eviscerate every potential market edge? Or if there are even market edges that a machine could pick up.

In trading, Billington said that the AI approach assumes that there are inefficiencies that a machine could learn as well as certain anomalies and things that can be predicted from whatever inputs there are.

Whether it's an issue of price or fundamental inputs, he said there has to be something that a machine could evaluate......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: DACH institutions push alternatives to 32.3% of portfolios as hedge funds make a comeback[more]

    Matthias Knab, Opalesque for New Managers: Institutional investors in Germany, Austria and Switzerland now hold almost a third of their portfolios in alternative investments, and they are more confident than ever in

  2. KRX chief courts CalPERS for bigger bet on Korea[more]

    Korea Exchange Chairman and CEO Jeong Eun-bo held talks with California Public Employees' Retirement System, or CalPERS, to promote greater investment in South Korea's capital markets, the bourse operator announced Wednesday. Jeong met with CalPERS Chief Investment Officer Stephen Gilmore.

  3. 755 Unicorns, $8 Trillion: Fifth Era maps the autonomous digital economy[more]

    Matthias Knab, Opalesque for New Managers: Fifth Era Partners, a specialized asset manager focused on the convergence of Internet, AI/Agentic and Blockchain technologies, has released the findings of its 13th Bia

  4. Opalesque Exclusive: "Enough beta plays" - how Fasanara builds an alpha-only multi-strategy platform[more]

    Matthias Knab, Opalesque for New Managers: Most multi-strategy funds promise diversification. Fewer can explain why their return streams should stay independent when markets turn. In an Opalesque SkillsLab investor

  5. Opalesque Exclusive: Governance, Scale, and Boutique Resilience in a Consolidating Hedge Fund Industry[more]

    Matthias Knab, Opalesque for New Managers: The hedge fund industry has undergone significant consolidation in recent years, with capital increasingly concentrated among large multi-strategy platforms. Yet boutique m