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In the week ending May 31st 2024, media reports revealed that tech savvy hedge funds are investing in generative AI by hiring top talent. Business Insider collected salary data from 8 hedge funds and prop-trading firms for AI roles. For years, hedge funds and prop-trading firms have relied on massive amounts of data and the workers who analyze it to beat the market. But the promise of generative AI has kicked off a new talent war for AI workers who can level up hedge funds' quantitative strategies with a new generation of transformative technology.

Hedge funds are shedding mega-cap tech and buying up other AI beneficiaries, says Goldman Sachs too. Funds cut positions in Google, Amazon, Microsoft, Meta, and Nvidia for lesser-known AI plays. Goldman's hedge fund basket has outperformed the S&P 500 60% of the time.

Specifically, hedge funds are signaling what they see as the next big artificial intelligence play: Taiwan Semiconductor Manufacturing Co. Renaissance Technologies, which delivered 62% annualized returns before fees and 37% after fees from 1988 to 2021 in its Medallion Fund, significantly increased its position in Palantir Technologies

In new launches, Paul Singer's Elliott Management raised $8.5 billion in its latest fundraise - the new capital can be called at any time over the next two years; BR Capital to launch long-bias digital assets hedge fund - the soon-to-be-launched Digital Assets Hedge Fund (SP2) aims to continue that approach as it invests in liquid tokens across the cryptocurrency ecosystem, and Goldman Sachs Asset Management (GSAM)'s alternative investment platform raised more than $20 billion for its private credit strategy, including the biggest pool of capital so far for the......................

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