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.

 

 

A recent Markets Media article highlights how @tZERO is resetting its vision - focusing on partnerships, regulated infrastructure, and global scale to make tokenized capital markets a reality.

Under CEO @Alan_Konevsky, the company is leveraging regulatory momentum to enable…

Want to know who calls the shots on trading tech? We partnered with @WeAreAdaptive to interview capital markets professionals globally to uncover key trends and evolving patterns in technology deployment. Reach the report here:

Load More

Related articles

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

  2. 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...

  3. DreamQuark provides enhanced advising, strengthened compliance, and smart document retrieval.

  4. Daily Email Feature

    Shining Light on Liquidity Lamp

    With Andy Lee, Director of Quantitative Research, Exegy

  5. Banks can seize an advantage by harnessing the power of untapped transaction data. 

We're Enhancing Your Experience with Smart Technology

We've updated our Terms & Conditions and Privacy Policy to introduce AI tools that will personalize your content, improve our market analysis, and deliver more relevant insights.These changes take effect on Aug 25, 2025.
Your data remains protected—we're simply using smart technology to serve you better. [Review Full Terms] | [Review Privacy Policy] Please review our updated Terms & Conditions and Privacy Policy carefully. By continuing to use our services after Aug 25, 2025, you agree to these

Close the CTA