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Episode 107: Sebastian Mallaby on How Venture Capitalists and Hedge Funds Achieve Success

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Artificial Intelligence and Machine Translation

IBM's Peter Brown and his colleagues developed a way to translate from French to English. They were called up by Jim Simons, who said they could apply their AI techniques to trading. Their hedge fund went up 30% a year every year just like routinely killed it in the markets. The technique is now being put into practice at other firms such as Renaissance technologies.

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