Chicago shop uses AI to analyse "mountains of data" Dr. Boris Krupa

Acrospire Investment Management LLC, a spin-out from Rotella Capital Management (RCM), began trading as an independent entity from its new Chicago offices on 1st February. The team is led by Dr. Boris Krupa, PhD in Brain and Cognative Science from MIT, and will continue running the global equity market neutral fund they had been running at RCM's subsidiary RotellaAcrospire. The strategy uses artificial intelligence (AI) and machine learning techniques implemented by Krupa.

Krupa's interest in complex systems dates back a long time. When he was an undergraduate at the University of Chicago, he published a paper on aspects of the study of complex systems.

Interestingly, he tells Opalesque, there are many parallels between how the brain works and how the financial markets work. "Both are highly complex systems and the technical and analytical tools that you can use to study one system can translate to the study of the other system. My studies included the biology of the brain, but my focus was also on the theoretical aspects of cognitive information processing and machine learning techniques."

Towards the end of his time at MIT, he begun developing an interest in finance and applying machine learning and its variants to the financial markets; he saw the causal relationships and the drivers for stock movements, and started a fascination for applying the techniques from machine learning to financial modelling.

In 2006, he joined Millennium Partners' WorldQuant group where he built algorithms. In 2009, he moved to Chicago to join the TransMarket Group, a proprietary trading shop, as a portfolio manager, and then joined RCM in 2010.

"After several years of building an in-house track record, we opened the fund to outs......................

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This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.