From Dow Jones & Company:

Castle Ridge Asset Management is using its purpose-built supercomputer, Wallace, which uses artificial intelligence to predict financial market movements. The system constantly refines its own models using an evolutionary process that has led to impressive annualized net returns of 12.4%. The hedge fund’s AI-driven strategies, based on genetic algorithms, are said to allow it to adapt to shifting market conditions and anticipate market movements based on signals in the data it analyzes. The hedge fund’s staff now spend their time trying to “break” Wallace’s system, by throwing in “unknown unknowns” and offering the AI new data.



Read more: Can AI and a supercomputer beat markets? This hedge fund is trying to find out.