Before I say much else, to really understand this concept and how it works, scroll on down and watch video #2 in the footer of this blog, or go here to watch the Quants of Wall Street documentary.  Once you do that you will understand a lot better about what the job of going to a hedge fund is really all about.  If you don’t watch the video then this article probably won’t mean as much.  

The quants and computer scientists write the models and code for the black boxes so Bridgewater Associates is in the market for new models as what hedge fund isn’t.  Also watch video #2 and listen to a former Wall Street Quant give you some additional information, “hedge funds are for scamming on retirement plans” in her words.  Actually below here’s another good interview done a couple years ago from Cathy O’Neill who worked at DE Shaw.  She tells you that the more that are in the game, the harder it is to win and I’m guessing we are going to top levels here now to get ahead of the pack. 

What I think is great as she explains the internal hunger that goes on with the chase for money, interesting to here the discussion of the culture.  “As a smart person we have the right to take advantage of dumb people” and yes that’s the way it goes when the money is there.  This is what I have called Algo Duping.  Risk people she says are “secondary citizens” on Wall Street and there’s a lot of truth to that as they do a job and get ignored by executives.  This video is about 2 years old. 

In healthcare I think we all know by now that WellPoint is a reseller of the IBMWatson technology and is now starting a program to pay oncologists to use their cancer treatment plans and I think Watson is involved there in determining what care the patient will get.  In addition we are seeing IBM Watson buying up a start data seller below. 

IBM Watson Invests in Start Up Company Welltok–Big Data Joins Forces With The Data Selling Platforms…

There was also the Sloan Kettering case with helping doctors locate clinical data relative to treatment therapies. 

IBMwatson and Sloan Kettering Produce Simulated Oncology Case Showing Value With Locating Related Clinical Data While Charting With an EHR (Update) WellPoint To Become a Watson Reseller Soon

If you watch the video above you might get the idea as to why we need to make those who create proprietary code responsible and allow others to verify and re-create their model. 

Not Only Is It Time to Hold Banks and Corporations Accountable, But Rather Hold Their CEOs, Math Model Creations and Proprietary Computer Code Accountable As Well…

So forget healthcare, time to go make some money at a hedge fund as they are controlling so much money out there today, so this might make sense as to why the data scientist went to the hedge fund  as the financial rewards can be huge.  You can also find this video over the Killer Algorithm page if you want to learn a lot more on how this works.  Again if you watch the video above , you’ll get the game plan as to why he left IBM.  The New York Times article below mentioned Bridgewater thinking about sharing it’s findings with the Fed and and Treasury…dream on reporter.  So what are they really looking for?  Here’s a clip from the Quant documentary, video #2 in the footer and at the Killer Algorithms page.  BD

Suzanne DeChillo/The New York Times David Ferrucci has left I.B.M., and Watson, and joined the hedge fund, Bridgewater Associates.

To the degree there was a human face of Watson, the “Jeopardy!” computer champion, it was David Ferrucci. He was the I.B.M. researcher who led the development of Watson, an artificial intelligence engine. The goateed computer scientist was always articulate and at ease in front of a camera or a microphone.

Dr. Ferrucci has left I.B.M. to join the giant hedge fund Bridgewater Associates. And the weight of the Watson-related fame, it seems, played a role. “I was so linked to the Watson achievement, and where I.B.M. was taking it, that I felt I was almost losing my identity,” he said in a recent interview.

WatsonPaths, by contrast, builds step-by-step graphs, or paths, that trace possible causes rather than mere statistical correlations. In the case of medicine at the Cleveland Clinic project, for example, the paths go from an observation of symptoms to a conclusion about the diagnosis of a disease and treatment.


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