Can hedge funds be automated?

Can hedge funds be automated?

At one end of extreme spectrum, a financial start-up called Lending Robot is an automated hedge fund which will invest exclusively in loans originated on peer to peer lending platforms, and will use algorithms to automatically buy and sell assets on behalf of its clients, negating the need for human investors.

Will hedge fund managers be automated?

Hedge fund managers and their service providers are also using AI to optimize middle and back office operations. As teams move away from managing work through spreadsheets and towards digital and cloud enterprise resource planning (ERP) solutions, AI can provide an edge.

What is a hedge fund macro strategy?

A global macro strategy is a hedge fund or mutual fund strategy that bases its holdings primarily on the overall economic and political views of various countries or their macroeconomic principles. Holdings may include long and short positions in various equity, fixed income, currency, commodities, and futures markets.

What does a primer broker do?

The role served by a prime brokerage is that of facilitating large, active trading operations such as hedge funds. A prime broker can be thought of as a sort of central broker, facilitating and coordinating extensive, complex trading in a variety of financial instruments.

What is a master feeder structure in a hedge fund?

A master-feeder structure is a device commonly used by hedge funds to pool taxable and tax-exempt capital raised from investors in the United States and overseas into a master fund. Separate investment vehicles, otherwise known as feeders, are established for each group of investors.

What brokerages do hedge funds use?

That’s where prime brokerage enters the picture. It serves the needs of hedge funds, which can be complex. Most of the big-name investment banks serve as prime brokers. That includes Goldman Sachs, JPMorgan Chase, and Credit Suisse.