Financial Services
Case StudyMan Group Plc

Man Group extends AI models to four large funds for predicting financial market pricing and risk

Man Group fund and asset management has now expanded the use of AI models to four funds, managing about $12.7 billion. Machine learning is being used to evaluate financial market risk and pricing based on historic data.

Context

"The investment firm, which until recently only deployed machine-learning models at its AHL Dimension fund, is now using them on three more money pools, the person said, asking not to be identified because the information is private. The four funds collectively managed $12.7 billion at the end of March [2017]."

The Project

"Man Group Plc is expanding the use of algorithms that evaluate risk, pricing and timing in financial markets and learn from their mistakes, according to a person with knowledge of the matter."

Data

Historic stock market data

Results

Undisclosed: "While such techniques have yet to prove themselves over time and on a broader scale, many hedge funds are scrambling to harness the techniques that have propelled money managers such as Two Sigma and Renaissance Technologies even as returns lag behind booming stock markets."

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