Two Sigma rapidly rises to top of quant hedge fund world

"How are the machines doing?

So far, not so great. Machine-learning has yet to deliver Earth-shaking returns. The Man AHL Dimension fund, which includes a machine-learning strategy, has returned an annualized 4.7 percent in three years through June, compared with a 2.5 percent gain for the average hedge fund.

The Eurekahedge AI Hedge Fund Index, which tracks 13 pools that use AI as part of their core strategies, has returned an average of 9.9 percent from the start of 2012 through 2016, and is up 8.5 percent this year through August.

That compares with an annualized gain of 14.6 percent over the five-year span, and a 11.9 percent rise this year through August, for the S&P 500 with dividends reinvested." https://www.bloomberg.com/news/articles/2016-11-10/why-machi...