World

A new machine-learning tool used by Citadel and Balyasny to rank their brokers hopes to put an to the 'old boys network'

Posted On: Apr 18, 2019   |   Posted By: Business Insider

A new machine-learning tool used by Citadel and Balyasny to rank their brokers hopes to put an to the 'old boys network'

Communications analytics company Behavox is rolling out Broker Vote, a machine-learning tool that ranks hedge funds' relationships with banks and brokers, at the end of May.
The program tracks the communication hedge funds have with the teams at banks and broker-dealers and uses natural-language processing to determine which broker was the most helpful to the fund - and funds pay them accordingly.
The tool may exacerbate the problem many of the largest banks have with shrinking commissions in their equity broker units.
Hedge funds are some of the world's most sophisticated investors around.
But the way they go about determining what, exactly, their relationship with brokers like Goldman Sachs or Morgan Stanley is worth is "completely subjective," according to Erkin Adylov, CEO of communications analytics company Behavox.
At the end of each quarter, hedge funds hold meetings to tabulate the commissions they need to pay their bank brokers. Adylov, who previously was a portfolio manager for Man Group and an...

Continue reading ...

 






The last Posts from Business Insider



8-year-old boy mauled by mountain lion while playing outside his home

8-year-old boy mauled by mountain lion while playing outside his home

A mountain lion left an 8-year-old boy with serious injuries when the beast attacked the child while he was playing outside his home in Colorado, officials said. The animal... Read more ...

Vegan parents whose strict diet left baby 'severely malnourished' avoid jail

Vegan parents whose strict diet left baby 'severely malnourished' avoid jail

Authorities discovered the couple's child so malnourished that, at 19 months old, she weighed just 10.8 pounds. Read more ...

German town offering $1.1 million to anyone who can prove it's not a real place

German town offering $1.1 million to anyone who can prove it's not a real place

There's more than 300,000 people who live in the town, but if you can prove it's all a hoax, you'll be $1.1 million richer. Read more ...

Scherzer goes 4 innings in return, Nationals top Pirates 7-1

Scherzer goes 4 innings in return, Nationals top Pirates 7-1

Pirates: Now 8-30 since the All-Star break Read more ...

Reports: Man crushed to death when apartment elevator suddenly drops

Reports: Man crushed to death when apartment elevator suddenly drops

This is horrifying. Read more ...

Hospital dresses babies up as 'Wizard of Oz' characters to celebrate movie's...

Hospital dresses babies up as 'Wizard of Oz' characters to celebrate movie's 80th anniversary

The babies were dressed up as the Cowardly Lion, Tinman, Scarecrow and Dorothy. Read more ...

Patriots player Patrick Chung indicted on cocaine possession charge in NH

Patriots player Patrick Chung indicted on cocaine possession charge in NH

Patriots safety Patrick Chung has been indicted on a charge of possessing cocaine in New Hampshire. Read more ...

Trump awards Medal of Freedom to NBA star Bob Cousy

Trump awards Medal of Freedom to NBA star Bob Cousy

WASHINGTON - President Donald Trump presented 91-year-old basketball legend Bob Cousy with the Presidential Medal of Freedom on Thursday, praising the Boston Celtics star as... Read more ...

Former 2020 candidate John Hickenlooper says he's running for Senate

Former 2020 candidate John Hickenlooper says he's running for Senate

Hickenlooper mounted a long shot presidential campaign that collapsed before it ended in mid-August. Read more ...

Cam Newton injury update: Panthers quarterback hurt in first game back from...

Cam Newton injury update: Panthers quarterback hurt in first game back from shoulder surgery

Cam Newton was sacked twice and removed with a foot injury in his first preseason action of 2019. Read more ...