Hedge Funds, Big Data And Tail Risk – The Millennium Bridge Example
July 6, 2017
Markets are not governed by an unalterable rationality; rather they reflect the humanity of their participants. Thanks to big data, machine learning, not to mention the relative cheapness of computing power, we no longer have to fit everything into one efficient market model.
This is the view of Jeremy Sosabowski PhD, CEO & co-founder, AlgoDynamix. His area of expertise is identifying endogenous portfolio risk. “The risk we look at is internally generated risk. It’s the panic. It’s not the external stuff. It’s not the Swiss central bank de-pegging their currency.