Numeraire (NMR) Numeraire is the native currency of Numarai | Crypto Great | Bitcoin | DeFi
Numeraire (NMR)
Numeraire is the native currency of Numarai, a blockchainpowered and AI-enabled quant hedge fund focused on aggregating stock market prediction models. Numerai rewards contributors who make correct and profitable models with its native NMR token.
A quantitative (quant) hedge fund is any hedge fund that relies upon algorithmic or systematic strategies for implementing trading decisions.
On October 6, the Numerai team announced that its prediction models have been beating the most prestigious hedge funds in the industry. Numerai is excited to share the performance of its hedge fund with its decentralized community who helped build it.
Numerai began building the current version of its hedge fund in September 2019. It faced a huge hurdle when, just a few months into development, the Covid-19 pandemic shook global markets, causing massive volatility in prices that led to the worst period on record for many quant hedge funds.
Not even bitcoin was spared, briefly dropping below $5,000 in March of 2020.
Although the global hedge funds faced turmoil throughout 2020, data scientists were excited to see how Numerai’s quant hedge fund performed unusually well.
Numerai’s performance allows the protocol to differentiate itself and highlight how risk-exposed some blue chip quant hedge funds really are.
Numerai has also been outperforming the traditional competition this year. In September, it reported that its net returns were up over 20% in the past year. These results show Numerai is beating Aurum’s Quant Equity Market Neutral Index by 32.33% and AQR’s Market Neutral Fund by 33.93%.
More investors and hedge funds are seeing the advantages of working together to create market signals through a decentralized network as opposed to simply competing with each other for worse results. Numerai is at the forefront of a new way of creating market predictions and is solidifying its place as the top quant hedge fund in the blockchain space.
