San Francisco-based AI hedge fund Numerai has secured up to $500 million in backing from JPMorgan Asset Management, marking a major milestone for the fast-growing firm.
Numerai, which positions itself as a hedge fund powered by a global network of data scientists, said the investment significantly expands its pool of capital. Over the past three years, the firm has grown its assets under management from $60 million to $450 million.
“This is the biggest milestone yet,” Numerai said in a statement. “JPMorgan is one of the largest allocators to quantitative strategies in the world, including in machine learning quant funds.”
Richard Craib
Track Record and Expansion
Numerai reported a 25% net return from its global equity hedge fund in 2023, underscoring the performance of its AI-driven trading strategies. With fresh capital secured, the company is scaling its operations and team.
The hedge fund said it has recently added several high-profile hires, including an AI researcher formerly at Meta and a trading engineer who previously worked at quantitative investment firm Voleon.
“Numerai is now scaling the team to match the opportunity,” the statement noted.
JPMorgan has not publicly commented on the investment.
Token Reaction
News of the deal sparked a sharp rally in Numerai’s native token, Numeraire (NMR), which surged 33% on Tuesday, according to pricing data. The token is used within Numerai’s ecosystem to incentivize data scientists who contribute models to the fund’s trading strategies.
