YouTube cofounder Steve Chen is partnering with veteran money manager Jack Fu to launch a hedge fund that picks stocks and fixed-income assets through the use of artificial intelligence.
The Draco Capital Macro Quant Fund has already raised $50 million with a goal of $200 million by the end of 2021, Chen said last week.
The fund that debuted in September uses an AI algorithm to gauge which assets are ideal for both bull and bear markets, he says.
“It utilizes much of the AI and big data processing that was employed in companies that I’ve worked and/or advised in Silicon Valley,” Chen says. “It weighs the large tech companies, such as Apple and Microsoft, in a bullish market, while focusing more on defensive assets, such as gold and long-term treasuries, in a bearish market.”