A hedge fund powered by ideas from anonymous contributors is attracting some prominent investors.
Union Square Ventures is joining Numerai’s previous partners, which include Peter Diamandis, a founder of Singularity University, and Howard Morgan, a founder of the unusually successful hedge fund firm Renaissance Technologies.
Numerai, created by a 29-year old former quantitative trader, Richard Craib, makes its investments based on models submitted by data scientists, who are allowed to remain anonymous and who are paid in Bitcoin based on the success of their models. The models all employ machine learning, which allows algorithms to integrate and adapt to new information over time.
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