Real Talk on AI Trading, Anthony Scaramucci, and Goldman Sachs' Bitcoin Play

Oct 3 2017 | 12:37pm ET

We took September off.

It was well-needed rest as we focused on the editorial upgrades at Modern Trader. So, let's pick up where we left off.   

Quotes of the Day 

"Goldman Sachs Group Inc. is weighing a new trading operation dedicated to bitcoin and other digital currencies, the first blue-chip Wall Street firm preparing to deal directly in this burgeoning yet controversial market, according to people familiar with the matter."

Oh... yes.... this will go just fine.

It was just a matter of time, and the Wall Street Journal was the first to report that America's favorite "vampire squid" is looking for a new way to make money.

Now that the government considers Bitcoin a tradeable commodity, of course, Goldman Sachs is going to get involved. 

Matt Levine at Bloomberg does a great job digging into this one today.

Will we see collateralized bitcoin derivatives in our lifetime?

Why not?

Let's do it.

It will end swimmingly.     

"I see myself as a TV host."

Anthony Scaramucci unveiled his latest project last night in New York. The former White House communications director and fund of funds manager has launched the "Scaramucci Post."

What is the Scaramucci Post?

Well, last night Anthony explained that he "has absolutely no idea" what it is yet... and that neither do you.

BuzzFeed took the first crack at explaining it as "an advertising-supported, politically centrist news outlet distributed natively on social media platforms."

Even then, reporters seemed confused... and intrigued.

Which was likely the point. 

People will keep asking questions until the idea emerges. We'll know more in the weeks ahead.

"Were we scared by it? Yes. You wanted to wash your hands every time you looked at it."

That’s Luke Ellis, CEO of hedge fund Man Group

Ellis' group poured a hell of a lot of money into artificial intelligence. 

That's what all the kids are doing these days if they want to make money. Only problem is that when they were asked how it worked (you know... how it made money...), no one really had an explanation.  

It's an interesting article with a throwaway conclusion about how robots are going to take over finance. Humans... it seems... are so passe. 

Of course, Bloomberg recently reported that a lot of quant strategies that involve robots haven't been generating a ton of alpha. That prompted this recent, terrific editorial in Modern Trader by Doug Litowitz titled "Revenge of the Humans." 

Check it out, right here

"Everyone [has] to learn to code. It's like not knowing how to read or writer in the new age."

That's Bridgewater Associates founder Ray Dalio. 

The hedge fund manager predicted on Fox Business last week that roughly half of the jobs in existence today will be replaced by robots and artificial intelligence. 

Dalio argues that the future will consist of "haves" and "have nots" in terms of a specific skill set necessary over the next two decades.

That skill is coding. 

 

Hedge Fund Reading List

Bloomberg: The Massive Hedge Fund Betting on AI

Barrons: Hedge Fund Managers Could Face Higher Taxes

Wall Street Journal: Hedge Funds Aren’t Dead Yet

CNBC: Buffett Willing to Wager Again on Index Funds

 

Private Equity Reading List

Morningstar: Private Equity Outlook: Larger Funds, Larger Deals

Axios: Private equity's woman problem

PEI: Fundraising Continues to Outstrip 2016

Better Working World: How Can Private Equity Create New Value?


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