And, fixed-income expert Nancy Davis advised that investors gain volatility exposure in that space.
Because of their work, Insider named Yao and Davis to our annual list of the 10 leaders transforming investing.
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During the GameStop saga that captivated Wall Street earlier this year, professional investment firms hustled to acquire scraping tools that helped them monitor the chatter on Reddit and other internet platforms.
This smart application of technology to make sense of and potentially get ahead of market moves is not going away anytime soon. That s according to Renee Yao, the founder of Neo Ivy Capital, a quantitative hedge fund that specializes in using artificial intelligence to pick stocks. Yao told Insider that the fund, which manages about $200 million in client assets, has generated a 10% annualized return since its inception in June 2016 thanks to its AI-driven model.
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Nancy Davis once won an award as a rising star in the hedge fund world. Now her star is rising in the exchange-traded-fund world, which is rapidly eclipsing that of hedge funds.
Davis Quadratic Interest Rate Volatility and Inflation Hedge ETF, or IVOL, recently surpassed $1 billion in assets. It s been less than two years since Davis converted her firm, Quadratic Capital Management, from a hedge fund to an ETF.
IVOL is designed to protect against volatility in interest rates and hedge against inflation, and it s benefited from a couple of major trends at once. One is investors growing appetite for ETFs, which offer lower fees and easier trading access than older strategies. Thanks in part to their lower cost to investors, many ETFs have delivered better returns.