Toronto Fintech Firm Leverages the Power of Financial Uncertainty and Stretches the Limits of Human Perception and Machine Intelligence
by efrem on Friday July 21, 2017 at 12:55 pm EST | Tags: activists, Chaos Theory, Complexity, DragonKings, Financial Uncertainty, FinTech, forecasting, Idea Grid, investors, prediction, Quantum Uncertainty
Start Leveraging the Power of Financial Uncertainty and Stretching Your Limits of Human Perception and Machine Intelligence —
This is where Running Alpha comes in!
Efrem Hoffman, CEO & Founder of Running Alpha Investments Inc. passionately believes that to move the needle and produce portfolio alpha, you need forward decision-making that sees in all directions.
“STOP A STOCK trade and avoid a catastrophic global financial crash. Seal a microscopic crack and prevent a rocket explosion. Push a button to avert a citywide blackout.” [ Oct 29th, 2013 edition of Wired magazine ]
Though such situations are mostly fantasies, a new analysis framework suggests that certain types of extreme events occurring in complex systems can be predicted and averted.
“A chaotic system may be in flux, and appear like random behavior,” said physicist Daniel Gauthier of Duke University in the Oct. 30 edition of Physical Review Letters, and as appearing in the Oct 29th, 2013 edition of Wired magazine — “USING CHAOS THEORY TO PREDICT AND PREVENT CATASTROPHIC ‘DRAGON KING’ EVENTS .”
Hoffman’s independent research on a more fundamental mathematical physics basis agrees with the article views, which mentions that: “there’s subtle tells of internal structure that leads to destabilizing events.”
Hoffman adds that systematic measurement and perception biases embedded in the market mechanism of publicly-traded auction markets make them not only highly prone to such symmetry-breaking events, but also even more favorably amenable to prediction than using Dragon-King Analysis for studying and predicting super-exponential power law behavior in natural and physical systems.
By looking at “experimental chaotic systems” like the financial markets and the weather, Running Alpha’s founder has been telegraphing when crisis events will be approaching; exploiting market aberrations of these apparent surprise events for competitive advantage.
Through deliberately constructing portfolios, he is now focusing on using these tools for helping activist investors pre-empt or at least tame otherwise extreme and unstable behaviors from adversely impacting investor portfolios.