Can Collective Intelligence Beat the Market? (with Numerai’s Richard Craib)
Quantitative hedge funds, which rely on the work of employed mathematicians to develop complex trading strategies, are nothing new. But what if the mathematical work is outsourced to anyone, via a contest where the best predictions are rewarded with cryptocurrency? Richard Craib, founder of Numerai, explains to Azeem Azhar how his $70 million fund uses collective intelligence to perform well, despite the turmoil in the markets.
Azeem Azhar's Exponential View
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Show Notes
Quantitative hedge funds (or “quant funds”), which rely on the work of employed mathematicians to develop complex trading strategies, are nothing new. But what if the mathematical work is outsourced to anyone, via a contest where the best predictions are rewarded with cryptocurrency?
Richard Craib, founder of Numerai, explains to Azeem Azhar why his $70 million fund uses collective intelligence to perform well, despite the turmoil in the markets.
They also discuss:
- The history and theory of quantitative investing.
- When collective minds can work better than brilliant individuals.
- How Richard found himself accidentally explaining how “quant funds” work to Howard Morgan, the co-founder of one of the most successful “quant funds” in the world.
Further resources:
- Money in the Metaverse (Exponential View Podcast 2022)
- Superminds Bridging the Innovation Chasm (Exponential View, 2022)
- Alien Stock Market Intelligence (Richard Craib, 2022)
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