A hedge fund is a partnership of investors that uses high-risk methods to make a profit. Hedge funds focus on small fluctuations in the economy, train algorithms to predict errors and price swings, and place financial bets on those occurrences.
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Hedge Fund Term Timeline in Weapons of Math Destruction
The timeline below shows where the term Hedge Fund appears in Weapons of Math Destruction. The colored dots and icons indicate which themes are associated with that appearance.
Introduction
...a new “laboratory”—the global economy. As a “quant” (quantitative analyst) for D.E. Shaw, a major hedge fund , O’Neil was amazed by how the operations she and her team performed each day...
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Chapter 2: Shell Shocked
Quants who work at hedge funds zoom in on tiny patterns, then train algorithms to predict recurring errors and price swings,...
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...their portfolios. Shaw could see that many companies and world markets would suffer—but as a hedge fund , they didn’t plunge into risky markets. Instead, they stood on the sidelines and bet...
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