Hedge Funds

Machine Learning: Separating The Signal From Noise In Investing

by wealthmanagement.com posted 1year ago 121 views
The potential for tapping new data sets is enormous, but the track record is mixed. : (Bloomberg Markets) --Machine learning is enabling investors to tap huge data sets such as social media postings in ways that no mere human could. Yet, despite the enormous potential, its record remains mixed. The Eurekahedge AI Hedge Fund Index, which tracks the returns of 13 hedge funds that use machine learning, has gained only 7 percent a year for the past five years, while the S&P 500 returned 13 percent annually. This year the Eurekahedge benchmark dropped 5 percent through September.