From the Financial Times:
Human investment managers risk obsolescence
Human investment managers are at risk of being rendered obsolete by rapid advances in algorithmic trading technology, according to the brains behind one of the world’s leading computer-driven hedge funds.
Leda Braga, who runs the $8.9bn BlueTrend hedge fund, said traditional investment approaches might soon struggle to keep ahead of so-called “systematic” computer models, as human fund managers are undercut by cheaper and more efficient technology.“Right now there is a place for both approaches,” she said. “That is the present. But then we have the future. Does the future hold a world where the systematic approach dominates? I suspect yes.”
She compared it to the world of Swiss watchmaking. “There is still a place for artisanal watches. But if you really want to know the time in an efficient way then you buy a quartz watch.”
Ms Braga, a Brazilian-born engineer, is one of a handful of women to have risen to the top of the hedge fund world. Her comments come as many traditional fund managers have struggled to make money for clients in the past year, with computer-driven hedge funds outpacing most of their human rivals in 2014.Late last year Ms Braga, who created the systematic computer trading business at hedge fund BlueCrest, spun off her funds into a new separate hedge fund called Systematica Investments....MORE
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