Richard Craib is on the podcast this week to discuss how he and his company are building the last hedge fund—Numerai. Richard has found that virtually all hedge funds today are continuously duplicating research and strategies. This lack of originality leads to less than stellar performance, and makes it difficult for new funds with original ideas to emerge. Numerai is built to solve this problem, as it's the first hedge fund to source original stock market signals, built from any data set from anyone in the world with zero barriers.
In this episode, Nick and Richard dive deep to discuss how Numerai uses weekly tournaments to gather data and better predict market trends. Users submit their signals, get immediate feedback on their originality, stake their submission with the NMR cryptocurrency, and then get paid for the quality and originality of their signal. It's a complicated process, but it's helping to create the world's largest and most original hedge fund—as well as generating significant wealth for users who can submit the best signals.