Science of Artificial Intelligence Used by Investment Firm

July 20, 2010 

At New York-based hedge fund Rebellion Research, a team of math-inspired professionals are using artificial intelligence (AI) for data crunching, trading, and investment moves.

Adopting the approach of tech companies like Google and Netflix, Rebellion is using “machine learning,” a branch of AI in which a computer program analyzes huge chunks of data and makes predictions about the future.

According to a recent Wall Street Journal article by Scott Patterson, an increasing number of investment firms are turning to the science of AI to make investment decisions.

"It's pretty clear that human beings aren't improving," said Spencer Greenberg, 27 years old and the brains behind Rebellion's AI system. "But computers and algorithms are only getting faster and more robust."

“No human could do this,” said Michael Kearns (University of Pennsylvania) in the article. Otherwise, he continued, “Your head would blow off.” Kearns has used AI for his complex investment decisions.

Despite the growing popularity of using AI, Patterson wrote, “Rebellion has struggled to raise money, in part because investors since the credit crisis are dubious of opaque math-based strategies.”

Read the full article here.

Source: The Wall Street Journal (July 13, 2010)