Capital Allocators – Inside the Institutional Investment Industry Richard Craib – Crowdsourcing Data Science for Returns at Numerai (Capital Allocators, EP.314)
May 11, 2023
Richard Craib, Founder and CEO of Numerai, shares his innovative journey creating a machine learning-based hedge fund that crowdsources predictions from data scientists worldwide. He discusses the unique incentive system using cryptocurrency and how it fosters diverse strategies. Craib delves into the intricacies of quantitative modeling, portfolio management, and the challenges of scaling a fund while maintaining performance. He also explores the future of AI in finance and reflects on his personal interests, emphasizing the importance of mentorship in his career.
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Early Finance Interest
- Richard Craib's interest in finance began at age eight when his father, a portfolio manager, gave him stocks.
- He followed their performance in newspapers, sparking a lifelong fascination with markets.
Math Revelation
- Craib realized his early finance education was superficial after reading math books at 18.
- This led him to study mathematics for a deeper understanding of financial markets.
Kaggle Inspiration
- Craib's Numerai idea stemmed from his experience with Kaggle data science competitions.
- He saw how data scientists consistently outperformed company benchmarks, inspiring him to apply crowdsourcing to hedge funds.