Rat-powered Hedge Funds? A Frightening Concept
A professor buddy sent a link to an outstanding article that mentions a study where researchers study the performance of a rat’s ability to learn how to “beat the market:”
Marcovici says the rats “outperformed some of the world’s leading human fund managers.” The rats were trained to press a red or green button to give buy or sell signals, after listening to ticker tape movements represented as sounds. If they called the market right they were fed, if they called it wrong they got a small electric shock. Male and female rats performed equally well. The second generation of rattraders, cross-bred from the best performers in the first generation, appeared to have even better performance, although this is a preliminary result, according to the text. Marcovici’s plan, he writes, is to breed enough of them to set up a hedge fund.
Here is a picture depicting the study:
A few key takeaways from the research:
- Some rats outperform the greatest hedge fund managers in the world.
- Male and female rats perform equally well.
- Rats, sired by rats with great performance, tend to perform better than “normal” rats in the population.
The researchers end-state is to breed a crew of genius rats and start a hedge fund so he can charge 2/20.
I can’t help but think this study is 100% in jest, but as far as I can tell, the research is fairly serious…even though the outcome and methodology are hilarious/frightening
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