Crowdsourced Hedge Fund Numerai Receives Up to $500 Million Investment Commitment from JPMorgan Chase

BlockBeats News, August 27th, according to Bloomberg, a crowdsourced hedge fund supported by billionaire Paul Tudor Jones is poised to double in size thanks to a substantial investment from JPMorgan Asset Management.

San Francisco-based Numerai LLC has stated that it has secured a commitment of up to $500 million from JPMorgan Asset Management, with these funds set to be deployed over the next year. The quant firm currently manages around $450 million in assets.

Numerai launched its first fund in 2019, with an investment strategy based on trading ideas from freelance financial quant researchers. These quants are rewarded with the company's native cryptocurrency and show confidence in their predictions by holding the token.

Numerai allows members to analyze various data on 6,000 global stocks, and users stake their predictions using Numeraire (NMR), the company's issued digital token. Participants with strong performance receive more NMR tokens, while those with poor performance see a reduction in holdings. Numerai constructs a long-short investment portfolio based on the amount of tokens members stake on their models.