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The guys at Rebellion Research are putting their money on a machine they say makes smarter decisions than many investors
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-- -- can predict what movies you like in an instant IBM has created a machine that can -- got pretty better than most humid.
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Can tailor what ads they show you depending on what kind of stay it it.
These are examples of machine learning what -- computers make intelligent decisions based on the data given -- that.
Now our hedge fund co founders think that machine could do better than them think -- -- bastards down here on the Wall Street.
And they're putting their money where their mouth it -- You're raising one point two million dollars in capital from 2005 to 2007.
Jonathan surges Spencer Greenberg Jamie Newton and Alex life.
Started rebellion restarts and New York City has found that has a machine making the investment decisions.
What makes us unique.
Is that we're actually trying to get her out and learn automatically from that that -- rather than saying that we know exactly how to invest we want our computer program or thereabouts.
Greenberg a grandson of baseball hall of Famer Hank Greenberg is -- when He year old mathematician.
He's also the CL of rebellion and along with -- I mean there has written the algorithm that -- hedge fund uses to make stock pick.
Computers and the -- to find subtle patterns.
-- and I think a lot of such patterns exist in financial markets and Asian Lady -- them it's an investment stock market -- process 7000 stocks every day.
Where is there's really no -- an analyst that can cover 7000 stocks.
They test these other -- -- -- using historical data and lobbying but admitted the analysis of the company may not be as in depth as a human.
He points out that's not necessarily the point.
If I'm covering 7000 stocks.
I can be picky about which when I want to actually nothing I can say I've got so many options are gonna pick the one firm really have the most confidence.
Whereas if you're him and you're only able to relate cover thirty stocks.
You know -- like that it.
This notion of letting the machines decide is reminiscent of the movie minority report.
And fortunately the rebellion machine is not as exciting -- visual.
But the group seems -- that its investment outcomes are exciting and that machine learning is the wave of the future.
What you don't see you what goes on behind the scenes this -- machine deciding what -- what to buy and sell.
We can't verify if the fund which has around fourteen million in assets has made money year over year.
But according to reports from its launch -- 2007.
To 2010.
It's beat the S and -- 500 stock index by an average of 10%.
It also has some big believers including well known investors on very heavy -- who might be interested in the machines no me -- Even when the Dow plummets 500 point.
It's money human goes -- -- situation like that He gets very fearful.
Especially when the stock market's going down machines that we don't our.
Don't have that fear factor embedded into it so it it does seem that is so it's a changing.
Added there's a changing landscape in the markets but -- able to make more more rational decision about that because it doesn't see it as a fearful.
Are -- thing.
And talking to the team of math junkies you realize they -- -- to make everything more logical.
Greenberg said He didn't even use math to analyze and -- -- a person's love life.
Well one little thing that people out with -- realize is that if on average it takes a year to find someone that that you really like days.
And you're able to double the number people that you meet each month.
I'll without taking it sacrificed the quality of those people than than actual and a -- -- -- time it takes to find someone to you can find them on divergence six months rather than a year.
That's certainly an interesting way of looking at it.
Greenberg's rational approach to dating mean as his machines rational approach to the stock market.
Yet given reliance on machine learning Greenberg's advice for other odds and nor is it somewhat ironic.
One thing that I -- underestimate.
As that is concerned business is the importance of personal connections just -- essential to build a network people who have different skills.
People who know no other people that might be relevant here as.
And it's it's comforting to know that while we humans are often irrational there's -- companies -- rebellion -- stage where people skills are needed.
And for more on this story go to rebellion research dot com.
And if you know an interesting young entrepreneur or email us -- young guns -- foxbusiness.com.
New York I'm Christina Scott.
