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.

49:30

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Episode guests

Richard Craib

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Episode notes

Intro

2min

From Curiosity to Quantitative Finance

21min

Unpacking the Data Landscape: Features, Growth, and Development

2min

Innovative Predictions at Numerai

6min

Navigating Quantitative Investing

11min

Harnessing Large Language Models for Transformative Hedge Fund Strategies

2min

Personal Interests and Investment Philosophy Insights

2min

Reflections on Mentorship and Career Challenges

3min

Today’s Sponsored Insight is from Richard Craib, the Founder and CEO of Numerai, a machine learning-based hedge fund launched in 2015 that crowdsources models from data scientists around the world to predict stock returns, incentivizes participation through cryptocurrency, and centralizes portfolio construction and risk management. Our conversation covers Richard’s background, some basics of data science, and the Numerai thesis. We discuss the firm’s idea generation, incentive system, quantitative modeling, portfolio construction, and team. We close with investors’ reaction to the product and research and development on the horizon. For full show notes, visit the episode webpage here. Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

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