Financial Technology and Hedge Funds

Abstract

Hedge funds have been on the leading edge of technology in finance with the use of big data, artificial intelligence, machine learning algorithms, and blockchain technology. This chapter examines how and why private fund advisors utilize emerging technology. Some indicia suggest that emerging technology plays a primary role in front office and investment functions, in the securing of crypto assets, but also in private investment fund managers’ attempts to satisfy the growth expectations of clients. The use of emerging technology in trade execution and other back-office functions goes hand-in-hand with an ever-increasing interest in the private investment fund industry in investing in digital assets.

Examining the research taxonomy of artificial intelligence, deep learning & machine learning in the financial sphere—a bibliometric analysis

“…In addition, Kaal (2019) observed that the performance of hedge funds, which has been on the leading edge of fintech users, had tremendously improved and employ big data, AI and ML algorithms in prediction and estimation, trade execution, and back-office functions. Moreover, Bloomberg (2019) reports that AI and ML can systematically help stock and derivative trading strategies in any upcoming trade by enabling an "if/then" thought process.…”