San Francisco-based Numerai LLC announced it has received an investment commitment of up to $500 million from the asset management arm of JPMorgan Chase & Co., to be deployed over the next year.
This development has the potential to double the hedge fund's current size, which currently manages approximately $450 million.
Founded in 2019, Numerai builds its investment strategies using trading ideas provided by freelance financial experts. These experts are rewarded with the firm's native cryptocurrency, Numeraire (NMR), which they use to demonstrate confidence in their predictions.
JPMorgan's interest in Numerai increased after it achieved a 25% return in 2024 and 15 consecutive months of positive performance. After a 17% loss in 2023, the fund updated its strategy to include a system that quickly exits unsuccessful trades. “People usually want to see a track record,” said Numerai founder Richard Craib. “If you're doing something unusual like we are, that interest comes even later.”
Craib compares Numerai to multi-strategy hedge funds like Millennium Management, but says the key difference is cost efficiency.
*This is not investment advice.
If JP Morgan endorses this crypto it’s a good buy and hold for the next 5 to 10 years.
I like it’s low circulation of 10665202.97