If Nadir Khan learned anything from three years working for Steve Cohen and then four more running his own hedge fund, it’s that getting the kind of edge—black or otherwise—that lets one succeed is boring and time-consuming. So many phone calls and boring dinners. So many nights poring over spreadsheets. So many annoying e-mails from compliance. And so many employees you have to pay to do it all.
It’s intense and tedious work to get data and information from primary sources. His researchers call stores around the globe to get information on inventory, contact farmers for fertilizer prices, and scout out Chinese ports to find out how many ships are docked. To get access to the necessary number of people to work the phones and systematically collect that kind of granular information, Khan sourced his human data collectors in Karachi, where labor is cheap.
And once those underpaid drones have done their work, they, too, can be dispensed with.
Once Qineqt—which will go live with a pilot of five asset managers in December—has its foundation of data, it will use machine learning and other technologies to automate the collection process.
And then feed the data into Ray Dalio’s principled robots to make money for the newly-extraneous humans, who can console themselves with the fact that at least they are no longer getting reamed out by Steve Cohen.
Former SAC Trader Launches Company Focused on Big Data [Institutional Investor]