The article explores the potential impact of AI on the hedge fund industry by 2025. It highlights that AI is already being utilized by some hedge funds, such as Viking Global, Walleye Capital, and Lone Pine Capital, to enhance their investment strategies. AI’s ability to process vast amounts of data and identify patterns could give these funds a significant edge. However, the article also notes that AI adoption is not without challenges, including the need for high-quality data and the risk of overfitting models. The article suggests that by 2025, AI will likely play a crucial role in areas like portfolio construction, risk management, and trade execution. Additionally, it discusses the potential emergence of AI-native hedge funds that are built entirely around AI systems. The article concludes that while AI presents opportunities, it also raises concerns about job displacement and the need for robust governance frameworks to ensure responsible AI use.
Source: https://www.businessinsider.com/hedge-funds-2025-viking-walleye-lone-pine-eisler-openai-2024-12