Two of the most sophisticated trading firms on Wall Street have dealt with the same artificial intelligence shock in quite different manners.
In July Jane Street suffered a loss of about $15 billion when its investments in the AI-oriented hedge fund Situational Awareness and in other technology-related positions were hit by a sudden market reversal. Citadel, by contrast, purchased a large part of Situational Awareness’s distressed public-equity portfolio, allegedly at discounts that went beyond 10 per cent, before quickly getting rid of more than 80% of the risk it had taken on.
Continue reading with TerreneGlobe Premium
Unlock unlimited access to every TerreneGlobe article for just $5.99/month.
Get independent, MBA-led coverage of finance, markets, business and the global economy, with reporting that goes beyond the headline to explain what happened, why it matters and what could come next.
Subscribe today for full access to TerreneGlobe. Cancel anytime.
Already a subscriber? Log in with email to continue reading.