A $28 billion hedge fund is pushing into machine learning

Man GLG, a UK hedge fund overseeing $US28.8 billion of assets as of March 31, is embracing machine learning.

The group has created a new position titled “head of machine learning.” The new role will oversee development of Man GLG’s machine learning capabilities involving news and social media analysis, breaking market news, and visualising complex data.

“We believe that machine learning techniques present an opportunity for discretionary investment managers, providing them with analytical tools to complement, and further enhance, their decision making processes,” said Man GLG CEO Teun Johnston. “We are continually seeking to develop our offering for our clients and, as the amount of data available continues to expand, these techniques can supplement existing rigorous quantitative and qualitative analysis.”

The firm has hired William Ferreira, formerly of Florin Court Capital, for the role. Ferreira previously worked as Technology Manager for Man AHL from 2011 to 2014. In that role, he was Chief Technology Officer for Man Systematic Strategies.

“I am excited about the opportunity to build Man GLG’s machine learning capabilities, developing tools to support the firm’s portfolio managers as they run high-conviction active portfolios,” said Ferreira.

Man GLG isn’t the first fund to try and make better use of the flood of data now available. Hedge funds have been turning to a “quantamental” investment strategy, using computer algorithms to comb through large data sets. In doing so, the funds are hoping to predict market behaviours to gain even the slightest advantage over competitors.

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