Richard Craib - Crowd-Sourced Alpha with Numerai (S7E28)

Numerai, an open hedge fund, leverages crowd-sourced AI models to generate alpha. CEO Richard Craib discusses Numerai's evolution from an interesting experiment to an institutional-scale hedge fund, emphasizing the importance of aligned incentives through the Numerai token. This staking mechanism requires researchers to back their predictions with capital, promoting conviction and accountability, and reducing noise. The conversation explores portfolio construction, risk management, and lessons learned from a 2023 drawdown, which led to enhanced diversification strategies. Looking ahead, Craib shares insights on the limits of crowd-sourced modeling and how AI agents are reshaping model development within Numerai's research ecosystem.