Core to CrowdCent's mission is crowdsourcing and decentralizing investment management. We believe that the decision making process and organizational design of the traditional hedge fund are fully under attack. A large portion of the industry relies on broken, pre-internet strategies that are too slow—most mispricings are quickly identified and corrected by the wide swath of factor mining algorithms that can make quicker and less biased decisions than can a portfolio manager.
The industry has reached a period of stasis that siphons wealth to a handful of entrenched individuals and it needs to stop. It's not so difficult to attribute value creation in the investment process, it's just that existing power systems have no reason to actually implement that attribution. Luckily, properly measuring and rewarding contributors of a system are what cryptoeconomies are all about. And if you haven’t realized it yet, cryptoeconomic incentives are a big (real) deal.
Enter Numerai. Numerai is "a new kind of hedge fund built by a network of data scientists. It uses its cryptocurrency (Numeraire) to incentivize anonymous data scientists around the world to collaborate and create predictive models on obfuscated financial data." Most recently, Numerai has released Numerai Signals which "lets Numerai source and reward stock market signals built with any model, trained on any dataset."
We <3 Numerai. CrowdCent has been an early Signals participant and is actively working on improving its datasets and modeling. CrowdCent is building a team to partake in core research for Signals data and feature/factor neutralization while staking NMR (i.e. having skin in the game) through our multiple models on the classic tournament and Signals. Hit us up if you’re interested in helping! We will evangelize the product and mission because Numerai just gets it. We’re starting by donating 50 NMR to the soon-to-be-established Numerai Council of Elders DAO multisig. And this really is just the start.
Up until this point, hedge funds have been shrouded in secrecy because they've had to be. Numerai introduces financial network effects so hedge funds don't need to be hyper-competitive, anti-social behemoths. We can all work and learn together. We're excited to lead the charge.