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jerryking : renaissance_technologies   5

The Man Who Solved the Market — how Jim Simons built a moneymaking machine
November 1, 2019 | | Financial Times | Robin Wigglesworth

The Man Who Solved the Market: How Jim Simons Launched the Quant Revolution, by Gregory Zuckerman, Portfolio, RRP$30/£20, 384 pages

Jim Simons looked to math and computers as ways to eliminate the emotional ups and downs of investing. “I don’t want to have to worry about the market every minute. I want models that will make money while I sleep.”
algorithms  books  finance  hedge_funds  James_Simons  massive_data_sets  mathematics  moguls  quantitative  Renaissance_Technologies  talent_spotting  winner-take-all 
november 2019 by jerryking
Winton Capital’s David Harding on making millions through maths
NOVEMBER 25, 2016 | Financial Times | by Clive Cookson.

Harding’s career is founded on the relentless pursuit of mathematical and scientific methods to predict movements in markets. This is a never-ending process because predictive tools lose their power as markets change; new ones are always needed. “We have 450 people in the company, of whom 250 are involved in research, data collection or technology,” he says. That is equivalent to a medium-sized university physics department....Harding's approach to making money is to exploit failures in the efficient market theory...the problem with the EMT is that “It treats economics like a physical science when, in fact, it is a human or social science. Humans are prone to unpredictable behaviour, to overreaction or slumbering inaction, to mania and panic.”...The Winton investment system is based instead on “the belief that scientific methods provide a good means of extracting meaning from noisy market data. We don’t make assumptions about how markets should work, rather we use advanced statistical techniques to seek patterns in huge data sets and base all our investment strategies on the analysis of empirical evidence...Harding emphasises the breadth and volume of investments involved, covering bonds, currencies, commodities, market indices and individual equities. The aim is to exploit a large number of weak predictive signals, he says: “We don’t expect to find any strong relationships between data and the price of the market. That may sound counter-intuitive but if there are strong relationships, someone else is going to be exploiting those. Weak relationships are where we have a competitive advantage.” Weather strategies are one feature of Winton research, including analysis of cloud cover and soil moisture levels to predict the prices of agricultural commodities. Other important indicators, for which maths can uncover value not fully reflected in market prices, include seasonal factors and inventory levels across supply chains....When I ask Harding about the use of machine learning and artificial intelligence to guide investment decisions, he bristles slightly. “There is a sudden upsurge of excitement about AI,” he says, “but we have used techniques that would be described as machine learning for at least 30 years.”

Essentially, he says, quantitative investing, self-driving cars and speech recognition are all applications of “information engineering”....he heads off to a lecture by German psychologist Gerd Gigerenzer, who runs the Harding Centre for Risk Literacy in Berlin
communicating_risks  mathematics  hedge_funds  investment_research  financiers  Winton_Capital  physics  Renaissance_Technologies  James_Simons  moguls  quantitative  panics  overreaction  massive_data_sets  philanthropy  machine_learning  signals  human_factor  weak_links  JumpMath 
november 2016 by jerryking
Hedge-Fund Magnate Robert Mercer Emerges as a Generous Backer of Cruz - NYTimes.com
APRIL 10, 2015 | NYT| By ERIC LICHTBLAU and ALEXANDRA STEVENSON.

Mr. Mercer, a reclusive Long Islander who started at I.B.M. and made his fortune using computer patterns to outsmart the stock market, emerged this week as a key early bankroller of Mr. Cruz’s surprisingly fast campaign start.

...Mr. Mercer does not have the name recognition of fellow Republican financiers like the Koch brothers or Sheldon Adelson, but he has spent more than $15 million since 2012 in support of conservative political campaigns and causes, donating to a number of candidates who had never even met him. ....Robert Mercer is discussed in “More Money Than God,” a book about the hedge fund industry by Sebastian Mallaby....Before joining Renaissance Technologies, Mr. Mercer, 68, worked at I.B.M.’s research center, where he specialized in computerized translation of languages.....When James H. Simons, the billionaire founder of the Renaissance hedge fund, hired Mr. Mercer in 1993, the company was more university campus than Wall Street firm. Mr. Simons, a mathematician and former code-breaker for the National Security Agency, brought in astronomers and physicists to analyze reams of data, using computer programs to search for patterns that could be used to inform trading decisions. Mr. Simons has been a major political backer of Democrats, donating $8.3 million in 2014.
hedge_funds  moguls  high_net_worth  Robert_Mercer  Wall_Street  Ted_Cruz  Renaissance_Technologies  books  Citizens_United  James_Simons  PACs 
april 2015 by jerryking

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