09.27.2017

Man Group Bets on AI

09.27.2017

Bloomberg reports that several years ago, Man Group was producing impressive returns with artificial intelligence in a test environment, but the $96 billion hedge-fund group couldn’t apply it to real-money portfolios because technologists couldn’t quite explain why AI was executing the trades it was executing.

Man released its AI system from quarantine in 2014, and the alpha rolled in, attracting additional assets along the way. By 2015, Bloomberg reported, artificial intelligence was contributing half the profits in one of Man’s biggest funds, the AHL Dimension Programme, even though AI had control over only a small proportion of overall assets.

Elsewhere in the company—and in the industry as a whole—AI technology is being used to find the speediest way to execute trades, to make bets on market momentum, and to scan press releases and financial reports for keywords that could signal that a stock will rise or fall. Even Man’s very human discretionary division, where business is centered on experienced asset managers, is exploring AI techniques, Bloomberg reported.

Big clients took a little time to warm up to AI, but they have since rushed to join Man’s algorithm-centric funds. Assets under management at Man have surged about 77 percent since the beginning of 2014, while AHL Dimension fund assets have more than quintupled since then.

Man has moved from viewing AI with skepticism to making it a cornerstone strategy. Among the company’s biggest expenditures now is computer equipment and hiring engineers.

 

 

🏆 The 2026 Global Markets Choice Awards are here! 🌍 Nominations are officially OPEN for the celebration of excellence in global capital markets trading & technology. Nominate below:
https://www.jotform.com/form/260086385121150

Delaware Life Insurance Company is becoming the first insurance carrier to offer an index that contains cryptocurrency, adding the BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index to its fixed index annuity (FIA) portfolio.

As the digital assets industry pushes toward

Franklin Templeton is expanding its tokenized fund suite, signaling growing institutional demand for blockchain-based fund infrastructure and regulated investment products moving onchain. Read the full article below:

$50 billion in active ETF inflows helped fuel a record year for @BlackRock 's iShares business, as investors continue to lean into active strategies.

Load More

Related articles

  1. The technology harnesses data to provide faster, more customizable insights and distribution.

  2. JP Morgan sees a democratization of information, and AI as a primary driver of progress.  

  3. President of Trillium Surveyor says the best leaders balance analytics with intuition.

  4. Platform is a one-stop shop for buy side and corporates to tap into data, analytics and trade execution.  

  5. Summer Trading Network 2016
    Daily Email Feature

    Trends in Trading

    Insights from two recent industry conferences provide a snapshot of the state of innovation on the trading des...