Latest news with #quantitativeAnalysis
Forbes
3 days ago
- Business
- Forbes
The End Of The Quant? How AI Is Democratizing Financial Analysis
NEW YORK, NEW YORK - MARCH 28: Traders work on the floor of the New York Stock Exchange (NYSE) on ... More March 28, 2025, in New York City. As President Trump's escalating trade war and signs of inflation concern investors, the Dow Jones Industrial Average (DJI) dropped more than 700 points or nearly 1.7%. (Photo by) Getty Images A new wave of artificial intelligence startups is setting its sights on one of Wall Street's most specialized roles: the quantitative analyst. From hedge funds to commodity trading floors, AI platforms are promising to democratize the complex mathematical models and data analysis that have long been the exclusive domain of highly-paid quants. Until recently, large language models for trading have been the domain of billionaire fund managers like Igor Tulchinsky, whose WorldQuant hedge fund manages over $23 billion and employs more than 150 PhDs to build custom AI systems. As Tulchinsky recently told Forbes , his firm is using LLMs to "convert and discover alphas in different domains," creating proprietary tools that can answer "very sophisticated questions" by combining standard models with internal data that "really nobody can replicate." But a new generation of startups is working to change that exclusivity, offering sophisticated AI-powered analytics to firms that previously couldn't afford such capabilities. The trend represents a fundamental shift in how financial institutions approach data-driven decision making. Rather than hiring teams of PhD-level analysts to crunch numbers and identify market patterns, firms are increasingly turning to AI systems that can process vast amounts of information in seconds and deliver insights in plain English. Three companies highlighted in recent case studies (FINTool, Metal AI, and Findly) are targeting different corners of the financial world with AI-powered research and analytics platforms. Each promises to transform hours of manual analysis into automated insights, potentially reshaping how investment decisions get made. The key trend has to do with the ability of AI to take disparate data sources to analyze them according to the wishes of risk takers. The promise is that AI systems can search for, aggregate and synthesise data-sources without human intervention. For instance, FINTool focuses on public equity research for hedge funds and banks, analyzing millions of documents from earnings reports to SEC filings. The platform claims to reduce analyst workloads from hours to seconds while maintaining "zero hallucinations" through a three-tier peer-evaluation system. On the other hand, Metal AI targets private equity firms, where deal teams struggle with fragmented data across multiple systems, be it market research platforms to confidential data rooms. The company's intelligence platform claims to unify internal and external data sources, allowing investment professionals to ask complex questions in natural language rather than spending time manually aggregating information. But perhaps the most developed attempt to replace traditional quant work comes from YC backed Findly , whose Darling Analytics platform is making waves in the notoriously complex world of commodity trading. Ignacio Hidalgo knows commodity trading from the inside. As a former lead book trader at some of the most prominent LPG trading desks, he experienced firsthand the daily struggle of synthesizing massive amounts of market data, weather patterns, shipping & flows information plus geopolitical developments into profitable trading decisions. "The problem was the same, just different," Hidalgo explains of his transition from trader to tech entrepreneur. "Most advanced tools for structured and advanced data analytics were still leaving traders without the context they needed. A very hard problem to solve" Now, alongside co-founder Pedro Nascimento, Hidalgo is building what he calls "brand new in the world" technology through their Y Combinator-backed startup Findly. Their Darling Analytics platform aims to give average commodity trading desks the "super analytical powers" traditionally restricted to specialized quant desks. Commodity trading operates in a world of extremes. Sophisticated mathematical models coexist with surprisingly basic tools. While some operations deploy complex algorithms and real-time analytics, others rely on WhatsApp group chats for deal-making. Traders often conduct business through messaging apps with minimal technological sophistication. "Charts don't give you the context," Hidalgo notes. "It's impossible for a human to ingest all the parameters: overnight price changes, ship loading information, weather data & forecasts, news. With AI, you can ask 'What happened to the price of crude this week? Is it a good time to buy?' and get a much clearer picture with market context. AI Quants: Real-World Implementation Darling Analytics is already being piloted at several large commodity firms. The system automates the kind of morning and event driven reports that junior traders typically compile manually, freeing up human analysts to focus on higher-value strategic work. It integrates (near) real-time structured data with unstructured information from market reports, X, Web, emails and news feeds to provide comprehensive market intelligence. "The AI can give full context on data on your metrics. This is not the same as just plotting a graph, it tells you what the graph is in the current context of the market," Hidalgo explains. The platform builds what he calls a "knowledge graph", allowing users to ask trader-specific questions in natural language and receive analysis that would previously require hours of manual research. For instance, a trader can ask the tool to plot the relationship between the weather and the propane stocks on the East Coast of the United States. While this previously would've taken a junior analyst hours to prepare, a trader can now delegate the task to the platform and see results in minutes. Query within DarlingAnalytics DarlingAnalytics What is next for AI quants? The success of these AI platforms raises important questions about the future of quantitative analysis in finance. If artificial intelligence can truly replicate the pattern recognition and analytical capabilities that make quants valuable, it could significantly alter the structure of trading and investment teams. For trading desks that rely on analysts or quants to provide studies for risk deployment, AI-powered analytics provide a competitive advantage by amplifying human capabilities rather than simply replacing them. The technology promises to democratize access to sophisticated analysis across entire organizations. However, the transition isn't without challenges. Commodity markets are notoriously unpredictable, influenced by everything from geopolitical tensions to weather patterns. The companies building these AI systems must ensure their platforms can handle the complexity and volatility that make human expertise so valuable in the first place. As Hidalgo puts it, the goal is to "empower the average user in commodity trading companies" with analytical capabilities that were previously the exclusive domain of specialists. Whether AI can truly replace the intuition and market feel that experienced traders bring to trading remains to be seen, but what it does do is provide an edge on data intelligence in minutes. But with major commodity traders already piloting these systems, the financial industry appears ready to find out.
Yahoo
11-05-2025
- Business
- Yahoo
Is Airbnb (ABNB) Among the Best Stocks to Buy According to Jim Simons' Renaissance Technologies?
We recently published a list of In this article, we are going to take a look at where Airbnb, Inc. (NASDAQ:ABNB) stands against other best stocks to buy according to Jim Simons' Renaissance Technologies. Even after his passing in 2024, billionaire investor and mathematician Jim Simons remains known as the 'Quant King' of hedge funds due to the extraordinary success of Renaissance Technologies, his quantitative trading firm based in New York. After years of researching the finance industry, Simons realized the untapped potential of employing quantitative analysis to capitalize on market inefficiencies. This insight led him to develop a data-driven investment strategy of analyzing market behavior solely using statistical and mathematical models. By identifying subtle, non-random patterns in financial data, the quant genius predicted future stock movements and generated impressive returns. Although it is closed to outside investors, Jim Simons' secretive Medallion hedge fund, a flagship of Renaissance, has produced ground-breaking results since its inception. The Medallion Fund raked in impressive returns of 56.6% and 74.6% during the early 2000s dot-com crash and the global financial crisis between 2007 and 2011. The fund has maintained a substantial annual return of 31.5% since its first two years of operation. At the time of his death, Simons was worth $31.4 billion, ranking him among the world's wealthiest individuals, thanks to the strong market performance of the Medallion Fund and Renaissance. READ ALSO: and . Renaissance Technologies' computer-driven powerhouse came off to a great start after a stellar performance in 2024. The Renaissance Institutional Diversified Alpha Fund has gained 9.05% as of February, continuing to build on its impressive 2024 return of 15.6%, which was its best since its inception in 2021. Meanwhile, the Renaissance Institutional Equities Fund has had its best start in over ten years, rising 11.85% in the first two months of 2025. Both funds are allowed to maintain sizable individual stock positions in addition to using stock index futures and options to help manage risk. However, the firm warns that it may be difficult to quickly unwind these sizable holdings without impacting market prices. For this list, we picked stocks from Renaissance Technologies' 13F portfolio as of the end of the fourth quarter of 2024. These equities are also popular among elite hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A vacation home luxury bedroom setup with stunning decor showing a desired getaway experience. San Francisco-based Airbnb, Inc. (NASDAQ:ABNB) runs an online marketplace that links homeowners with travelers seeking accommodation. DA Davidson reiterated its Buy rating and $155 price target for Airbnb, Inc. (NASDAQ:ABNB) on May 5. The company's analyst, Tom White, maintained his evaluation after examining Airbnb's 2025 first-quarter results. Although the company's foreign exchange-neutral gross bookings and revenue growth aligned with projections, adjusted EBITDA exceeded them, despite unit growth being marginally below forecasts. Although there was some observed softness in the U.S. market, where North America accounted for 45% of Airbnb's 2024 revenue, the analyst pointed out that the situation appeared to be more related to customers delaying decisions on longer-lead-time trips than a shift towards lower-priced options. Moreover, the company plans to relaunch its Experiences platform and add traditional hotel inventory, which may impact its development. Airbnb's management remains confident in its strategic positioning and long-term EBITDA margin guidance of 34.5% by FY25. Oakmark Global Fund stated the following regarding Airbnb, Inc. (NASDAQ:ABNB) in its : 'Airbnb, Inc. (NASDAQ:ABNB) is an online marketplace to list, discover and book unique accommodations worldwide. The company benefits from a strong network effect between its guests and hosts. We believe there is a long growth runway as global travel is an attractive market, and alternative accommodations have been taking share. We anticipate Airbnb will drive further growth by creating more valuable services for both sides of its network. This includes the potential for paid placement, which has created significant economic value for comparable market places. In our view, management is aligned with shareholders and well qualified to lead Airbnb as the company attempts to capture these growth opportunities. Short-term concerns about the macro travel environment and declining margins stemming from growth investments allowed us to purchase shares at a discount to our estimate of business value.' Overall, ABNB ranks 8th on our list of best stocks to buy according to Jim Simons' Renaissance Technologies. While we acknowledge the potential for ABNB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ABNB but trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at . 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Yahoo
11-05-2025
- Business
- Yahoo
Is Novo Nordisk (NVO) the Best Stock to Buy According to Jim Simons' Renaissance Technologies?
We recently published a list of In this article, we are going to take a look at where Novo Nordisk A/S (NYSE:NVO) stands against other best stocks to buy according to Jim Simons' Renaissance Technologies. Even after his passing in 2024, billionaire investor and mathematician Jim Simons remains known as the 'Quant King' of hedge funds due to the extraordinary success of Renaissance Technologies, his quantitative trading firm based in New York. After years of researching the finance industry, Simons realized the untapped potential of employing quantitative analysis to capitalize on market inefficiencies. This insight led him to develop a data-driven investment strategy of analyzing market behavior solely using statistical and mathematical models. By identifying subtle, non-random patterns in financial data, the quant genius predicted future stock movements and generated impressive returns. Although it is closed to outside investors, Jim Simons' secretive Medallion hedge fund, a flagship of Renaissance, has produced ground-breaking results since its inception. The Medallion Fund raked in impressive returns of 56.6% and 74.6% during the early 2000s dot-com crash and the global financial crisis between 2007 and 2011. The fund has maintained a substantial annual return of 31.5% since its first two years of operation. At the time of his death, Simons was worth $31.4 billion, ranking him among the world's wealthiest individuals, thanks to the strong market performance of the Medallion Fund and Renaissance. READ ALSO: and . Renaissance Technologies' computer-driven powerhouse came off to a great start after a stellar performance in 2024. The Renaissance Institutional Diversified Alpha Fund has gained 9.05% as of February, continuing to build on its impressive 2024 return of 15.6%, which was its best since its inception in 2021. Meanwhile, the Renaissance Institutional Equities Fund has had its best start in over ten years, rising 11.85% in the first two months of 2025. Both funds are allowed to maintain sizable individual stock positions in addition to using stock index futures and options to help manage risk. However, the firm warns that it may be difficult to quickly unwind these sizable holdings without impacting market prices. For this list, we picked stocks from Renaissance Technologies' 13F portfolio as of the end of the fourth quarter of 2024. These equities are also popular among elite hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). An elderly couple receiving insulin from a pharmacist, representing healthcare company's successful pharmaceutical products. Novo Nordisk A/S (NYSE:NVO) is a prominent global healthcare company that focuses on treating rare diseases, diabetes, and obesity. With 48,000 workers spread across more than 168 countries, Novo Nordisk is well-known for its pharmaceuticals, which include Wegovy, Rybelsus, and Ozempic. On May 7, BofA Securities lowered its price target for Novo Nordisk A/S (NYSE:NVO) shares from DKK 910 to DKK 850, despite maintaining a buy rating on the stock. During a call with an analyst, Novo Nordisk stated that it was confident in a second-half year inflection, driven by several initiatives. The company also intends to implement a focused SG&A commercial strategy. Novo Nordisk's guidance is predicated on the idea that Wegovy and Ozempic will both benefit from a decrease in compounded semaglutide in the second half of the year. However, BofA's analyst pointed out that the company provided limited information about the workings of these processes, such as the effects of capture rates, brand switching, and inventory levels. Overall, NVO ranks 3rd on our list of best stocks to buy according to Jim Simons' Renaissance Technologies. While we acknowledge the potential for NVO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NVO but trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at .
Yahoo
11-05-2025
- Business
- Yahoo
Is Gilead Sciences (GILD) Among the Best Stocks to Buy According to Jim Simons' Renaissance Technologies?
We recently published a list of In this article, we are going to take a look at where Gilead Sciences, Inc. (NASDAQ:GILD) stands against other best stocks to buy according to Jim Simons' Renaissance Technologies. Even after his passing in 2024, billionaire investor and mathematician Jim Simons remains known as the 'Quant King' of hedge funds due to the extraordinary success of Renaissance Technologies, his quantitative trading firm based in New York. After years of researching the finance industry, Simons realized the untapped potential of employing quantitative analysis to capitalize on market inefficiencies. This insight led him to develop a data-driven investment strategy of analyzing market behavior solely using statistical and mathematical models. By identifying subtle, non-random patterns in financial data, the quant genius predicted future stock movements and generated impressive returns. Although it is closed to outside investors, Jim Simons' secretive Medallion hedge fund, a flagship of Renaissance, has produced ground-breaking results since its inception. The Medallion Fund raked in impressive returns of 56.6% and 74.6% during the early 2000s dot-com crash and the global financial crisis between 2007 and 2011. The fund has maintained a substantial annual return of 31.5% since its first two years of operation. At the time of his death, Simons was worth $31.4 billion, ranking him among the world's wealthiest individuals, thanks to the strong market performance of the Medallion Fund and Renaissance. READ ALSO: and . Renaissance Technologies' computer-driven powerhouse came off to a great start after a stellar performance in 2024. The Renaissance Institutional Diversified Alpha Fund has gained 9.05% as of February, continuing to build on its impressive 2024 return of 15.6%, which was its best since its inception in 2021. Meanwhile, the Renaissance Institutional Equities Fund has had its best start in over ten years, rising 11.85% in the first two months of 2025. Both funds are allowed to maintain sizable individual stock positions in addition to using stock index futures and options to help manage risk. However, the firm warns that it may be difficult to quickly unwind these sizable holdings without impacting market prices. For this list, we picked stocks from Renaissance Technologies' 13F portfolio as of the end of the fourth quarter of 2024. These equities are also popular among elite hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A physician and a patient having a discussion in a hospital about biopharmaceutical medicines. Gilead Sciences, Inc. (NASDAQ:GILD), a U.S. biopharmaceutical company headquartered in Foster City, California, focuses on developing antiviral treatments for illnesses such as COVID-19, hepatitis B and C, influenza, and HIV/AIDS. For the first quarter of 2025, Gilead Sciences, Inc. (NASDAQ:GILD) reported total product sales of $6.6 billion, a 1% decrease year-over-year. Although sales of COVID-19 treatments declined, the company's base business, excluding Veklury (remdesivir), grew 4% year-over-year to $6.3 billion, indicating the underlying strength of its core portfolio. HIV products remained the mainstay of Gilead's operations, accounting for $4.6 billion in sales (70% of total revenue) and increasing by 6% year-over-year. On May 7, Gilead Sciences, Inc. (NASDAQ:GILD) announced that it would invest an additional $11 billion in the United States to strengthen its domestic manufacturing and research capabilities, becoming one of the latest companies to reveal spending plans in response to President Donald Trump's tariff policy. According to the pharmaceutical company, the new investments will augment a $21 billion budget already set aside to support U.S. manufacturing and R&D through 2030. These expenditures will be allocated toward upgrading three existing locations, constructing three new facilities, and acquiring new technology. ClearBridge Value Strategy stated the following regarding Gilead Sciences, Inc. (NASDAQ:GILD) in its Q1 2025 : 'Health care stocks populated our top performers for the quarter. Biopharmaceutical company Gilead Sciences, Inc. (NASDAQ:GILD) announced strong fourth-quarter earnings growth and also rose both on news that its HIV prevention treatment drug Lenacapavir had been filed for U.S. approval, with an anticipated launch scheduled for mid-2025, and on positive reception to its cirrhosis of the liver treatment Livdelzi in its first full quarter.' Overall, GILD ranks 10th on our list of best stocks to buy according to Jim Simons' Renaissance Technologies. While we acknowledge the potential for GILD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GILD but trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at . 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Yahoo
11-05-2025
- Business
- Yahoo
Spotify Technology S.A. (SPOT): Among the Best Stocks to Buy According to Jim Simons' Renaissance Technologies
We recently published a list of In this article, we are going to take a look at where Spotify Technology S.A. (NYSE: SPOT) stands against other best stocks to buy according to Jim Simons' Renaissance Technologies. Even after his passing in 2024, billionaire investor and mathematician Jim Simons remains known as the 'Quant King' of hedge funds due to the extraordinary success of Renaissance Technologies, his quantitative trading firm based in New York. After years of researching the finance industry, Simons realized the untapped potential of employing quantitative analysis to capitalize on market inefficiencies. This insight led him to develop a data-driven investment strategy of analyzing market behavior solely using statistical and mathematical models. By identifying subtle, non-random patterns in financial data, the quant genius predicted future stock movements and generated impressive returns. Although it is closed to outside investors, Jim Simons' secretive Medallion hedge fund, a flagship of Renaissance, has produced ground-breaking results since its inception. The Medallion Fund raked in impressive returns of 56.6% and 74.6% during the early 2000s dot-com crash and the global financial crisis between 2007 and 2011. The fund has maintained a substantial annual return of 31.5% since its first two years of operation. At the time of his death, Simons was worth $31.4 billion, ranking him among the world's wealthiest individuals, thanks to the strong market performance of the Medallion Fund and Renaissance. READ ALSO: and . Renaissance Technologies' computer-driven powerhouse came off to a great start after a stellar performance in 2024. The Renaissance Institutional Diversified Alpha Fund has gained 9.05% as of February, continuing to build on its impressive 2024 return of 15.6%, which was its best since its inception in 2021. Meanwhile, the Renaissance Institutional Equities Fund has had its best start in over ten years, rising 11.85% in the first two months of 2025. Both funds are allowed to maintain sizable individual stock positions in addition to using stock index futures and options to help manage risk. However, the firm warns that it may be difficult to quickly unwind these sizable holdings without impacting market prices. For this list, we picked stocks from Renaissance Technologies' 13F portfolio as of the end of the fourth quarter of 2024. These equities are also popular among elite hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A person wearing headphones listening to an audio streaming service. Spotify Technology S.A. (NYSE: SPOT), a leader in digital music streaming, is renowned for revolutionizing the music industry. The company has transformed how music is monetized by compensating artists based on song streams, rather than traditional revenue models that rely on album sales and live performances. On April 30, Batya Levi and other UBS analysts reiterated their Buy rating for Spotify Technology S.A. (NYSE:SPOT) stock, maintaining a price target of $680. The endorsement follows Spotify's most recent financial report, which showed that, although revenue growth on a foreign exchange-neutral (FXN) basis slowed to 15% year-over-year, down from 17% in the previous quarter, the company's subscriber numbers exceeded projections. Additionally, the company's gross margins increased by about 400 basis points, lower than the 550 basis points in the previous quarter. Despite this, Spotify's management has reaffirmed its goal of increasing gross margins by 2025, albeit at a more gradual pace with expected fluctuations throughout the year. In the US, UK, Canada, and Australia, Spotify Technology S.A. (NYSE: SPOT) has also introduced Partner Programs that enable video podcast creators to earn money from their work in various revenue streams. As a result, creator payouts rose by a notable 300% in just one month, while the platform's video podcast consumption grew by more than 20%. Baron Focused Growth Fund stated the following regarding Spotify Technology S.A. (NYSE:SPOT) in its : 'Spotify Technology S.A. (NYSE:SPOT) is a leading global digital music service offering on-demand audio streaming through paid premium subscriptions and an ad-supported model. Shares were up, once again attributable to another impressive beat in gross margins and a healthy increase in operating margins. Spotify has been on a path to structurally increase gross margins, aided by its high-margin artist promotions marketplace, growing contribution from podcasts, and structural investments in advertising. Users continued to grow at a double-digit pace despite price hikes. Spotify also continued to innovate on the product side, calling 2025 the 'year of accelerated execution,' with priorities in improving advertising, expanding into video, developing a Super Premium tier, and taking more market share. We view Spotify as a long-term winner in music streaming with potential to reach 1 billion-plus monthly active users.' Overall, SPOT ranks 12th on our list of best stocks to buy according to Jim Simons' Renaissance Technologies. While we acknowledge the potential for SPOT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SPOT but trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
