How This Hedge Fund Robot Outsmarted Its Human Master


Yoshinori Nomura

Yoshinori Nomura.

Photographer: Takaaki Iwabu/Bloomberg
  • Simplex uses artificial intelligence to trade Japan futures
  • AI investors are outperforming as global hedge funds struggle

Yoshinori Nomura felt like weeping. It was the morning of June 24, Brexit day, and markets were moving against him.

Well, not against him, exactly. It was the hedge fund manager’s self-learning computer program that had placed the bet, selling Japanese stock-index futures before a sizable market advance. Nomura had anticipated a rally, but decided not to interfere, and his fund was paying the price.

Then, in an instant, everything changed. When new vote counts signaled Britain was going to leave the European Union, a burst of selling sent Japanese shares to their biggest drop in five years. By luck or design, Nomura’s Simplex Equity Futures Strategy Fund ended the day with a 3.4 percent gain, one of its best results in three months of trading…

How This Hedge Fund Robot Outsmarted Its Human Master

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