JP Morgan Set To Use AI Technology For Its Hedge Funds
Investment banking and services firm, JP Morgan & Co. is advancing its usage of AI into its hedge funds. This comes at a time where new technology and expertise in the financial sector is growing in popularity as big companies are competing to secure the best and most effective tech. for their business. In finance, timing is crucial.
The banking firm, which has previously been making use of artificial intelligence technology in its investment banking schemes, is preparing to apply the technology somewhere else by investing in developing and established statistical machine learning hedge funds. This approach has been planned by JP Morgan’s asset managing branch, and the project has been confirmed to be named “The Machine Learning Fund Ltd.”. It will be employed in the bank’s £12 billion hedge fund business, verified by recent regulatory filings a month ago.
However, this is not the first occurrence of JP Morgan investing money into hedge funds. Not too long ago, the banking firm invested £160 million with Duane Park Capital Management. It shut down of late after a run of only two years. The bank also recalled its investment from Mana Partners, an investment firm which specialised in advanced quantitative analysis.
JPM and its opponents such as Morgan Stanley (another investment bank) have invested billions of pounds into new machine learning technology in order to try and get ahead of the competition. A year ago, JP Morgan in particular launched an equity data science unit inside its asset managing branch to discover ways that artificial intelligence could contribute in making choices about investments
Large investment companies have focused on machine learning in the past few years as its potential has become more recognised for the financial sector. For example, it could allow computers to produce investment deductions without much human involvement being needed in the process, if any. This makes the technology very powerful and very desirable as a way for top firms to keep their place in the dangerous but rewarding world of financial markets.