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Hedge Funds Enter AI Arms Race
A new report by Bas Kooijman, CEO of DHF Capital S.A, shows hedge funds are in a quiet AI arms race. Firms using Generative AI achieve 1.8–3.5% stronger annualized returns compared to non-AI competitors.
AI Used Across All Trading Strategies
Generative AI is applied in equity long/short, quant, and macro strategies, showing broad industry adoption. Funds building in-house language models and hiring specialist AI teams see the most consistent trading performance.
Unlocking Alternative Data with GenAI
Hedge funds now mine social sentiment, satellite imagery, and alternative datasets with unprecedented speed. Retrieval-Augmented Generation (RAG) enables teams to extract insights from decades of internal memos and proprietary datasets.
GANs Improve Stress Testing and Models
Generative Adversarial Networks (GANs) create synthetic data to refine models and improve stress-testing. GenAI shortens research cycles, strengthens trade conviction, and enhances portfolio positioning.
AI Transforms Hedge Fund Operations, Performance Gap Becoming Structural
Leading funds automate compliance, investor communications, and document triage, reallocating staff to alpha-generation. Tech-forward hedge funds now scale faster, redefining competition in global finance and widening the gap with laggards.
