Age of AI: The latest on artificial intelligence in hedge fund operations

22 May, 2025 | Hedgeweek
Age of AI: The latest on artificial intelligence in hedge fund operations

We are excited to share that we were recently featured in Hedgeweek's "Age of AI" report, with Minotaur Capital's Thomas Rice contributing alongside the world's leading hedge fund managers.

The report delves into the strategic drivers behind the implementation of AI and automation solutions, identifies current barriers to wider adoption and highlights the catalysts that could accelerate future integration. The report found that 55% of hedge funds that have implemented AI and automation have enjoyed efficiency improvements of 41% or greater. In addition, it found that smaller hedge funds lead in advanced AI/automation adoption. Those under $250m AUM represent 77% of those that have implemented AI across multiple operational functions.

As outlined in the report, Rice expects AI’s role in investment management to grow “exponentially”, noting that Minotaur Capital is pushing deeper into automated research workflows, particularly in extending AI’s role beyond idea generation into more sophisticated analysis.

"Ideally, we’ll soon be able to scan thousands of companies continuously, automatically ingest their materials, analyse them through the lens of our investment philosophy, develop preliminary theses, and alert us when compelling opportunities emerge, complete with specific next steps that require a human in the loop. As LLMs and public data become increasingly commoditised, differentiation will come from how firms embed their unique investment philosophies into these systems," he said.

Minotaur is systematically translating its approach into frameworks that guide its AI systems to ensure “they extend our thinking rather than replacing it,” he adds, arguing that within the next five years, it's likely that successful investment firms will rely heavily on AI integration.

To read the rest of the report, click the link below.

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