A recent Bloomberg article written by Sonali Basak describes Bridgewater’s history using AI & ML in our investment process, its application today, and our team of investors, scientists, and partners leading this work.
The piece highlights our exploration with AI for over a decade and the establishment of AIA Labs, a business spearheaded by Co-Chief Investment Officer, Greg Jensen. Basak discusses how Bridgewater has focused on its own proprietary technology used to build a de-optimized, explicable tabular learning process in addition to models developed by partners at OpenAI, Anthropic and Perplexity, among others.
Basak also discussed the launch of a “new vehicle led by co-CIO Greg Jensen,” with capital from more than a half-dozen clients.
CEO, Nir Bar Dea, was quoted stating that, “The push into machine learning is a good manifestation of us taking the flag and putting it at the top of the mountain. This is maybe the most significant and pure manifestation of the moment we’re in.”
Greg was quoted stating that “you’re going to have intelligence that can read every newspaper in the world. Machines are better at finding patterns across times and across countries,” in discussing AIA within the context of technological advancements.
The talent that Bridgewater has brought on board is also discussed, from the former lead of IBM Watson, David Ferrucci, from 2012-2021, to Statistician Jasjeet Sekhon, a professor at Yale University who joined Bridgewater in 2018 and is now Chief Scientist and Head of AI & ML for AIA Labs.
AIA Labs is dedicated to developing and applying state-of-the-art AI & ML tools to generate alpha in markets. Bridgewater’s AIA Labs is combining a broad set of AI tools (de-optimized tabular data models, reasoning tools, and LLMs) using proprietary techniques developed in-house to build an AI-based Reasoning Engine capable of performing fundamental, systematic investment research.
Read more on Bloomberg.com.
Pure Alpha returns quoted in the referenced article are for the Pure Alpha 18% Volatility Strategy, net of fees, YTD as June 30, 2024. Past performance is not necessarily indicative of future results. There is no guarantee that the results shown or referred to can or will be achieved in the future. Raised AUM was $1.6 billion in nominal terms, as of July 1, 2024. Investment strategies that utilize AI are subject to certain additional types of risk, described here. Please see important disclosures and other information.