Predicting market shifts has become a holy grail of numerous financial institutions. While the predictive technology might not yet be ready, numerous companies are trying to further this advanced science.

Let’s take a look into a novel approach adopted by one crypto and stock hedge fund. Is a competitive environment really what science needs, and what can we learn from this model? Read more in our Numerai review.

Who Owns Numerai Brand?

Numerai hedge fund is an AI-driven project oriented towards market prediction based on multiple samples and thanks to the work of thousands of anonymous data specialists and scientists. It was founded in October 2015 by Richard Craib. He was under 30 when he started the project.

There isn’t a single entity, as the company comprises several branches, each with its own purpose, registration number and date of incorporation:

As a hedge fund, Numerai was backed by influential individuals known for their investment enterprises, work with venture capital, start-up projects and other fields. 

Most notable persons that participated in fueling the project are Paul Tudor Jones (billionaire hedge fund manager), Naval Ravikant (CEO of AngelList and entrepreneur) and Howard Lee Morgan (one of the founding team members of the hedge fund Renaissance Technologies).

The company has several social network profiles, including X, LinkedIn, Medium, Reddit and Telegram. While there are no Numerai reviews on popular review sites like Trustpilot, we did find them on CheckerChain and almost every single one includes the highest available rating.

Is Numerai Regulated?

Securities and Exchange Commission (SEC) has multiple Numerai branches registered in their database:

The entity we’re focused on in this review was initially registered with SEC upon its incorporation in 2016:

State Securities Regulators confirm that the conduct has the “approved” status as an investment advisory business, as evident in the collective database:

In this sense, the company obviously is known to authorities and is properly regulated and supervised in their financial services activities in the country where their headquarters are.

Numerai Platform Overview

Unlike SwiftCoin, the core of the Numerai business is market data analysis with an aim to create an efficient market prediction computer program. All other services, including the Numerai stock and crypto hedge funds are merely ancillary, and exist to further this goal.

The greatest of the efforts is made by the Numerai crypto analysis division. The company has created a framework in which users can compete by sharing their own cryptocurrency signals.

The tournament, as it is called, provides an obfuscated dataset for signal backtesting. Additional code is available for API integration, as well as machine learning algorithms for Python and R.

The Numerai performance examination team will gauge the quality and originality of the signal by comparing it with both other signals on the market, and competing user submissions on the platform itself.

Additional testing functionality is provided through the use of Numerai token (NMR – Numeraire). Competition participants may earn (or burn) up to 25% of the allotted NMR currency each week. This distinguishes it from trading tool providers like AlphaSense, for instance.

Participation in the tournament, as well as access to the wealth of information from the company’s database is free of charge for individuals. Corporate and business investors, however, may incur a different Numerai price model. 

These costs are not fully disclosed on the site, however, and to learn more you will need to contact company representatives.

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