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Game changers, welcome home.

Hi there, I'm Azim Azar, and this is the Exponential View podcast.

Now I want to start with a little story, and just please bear with me,

it is connected to our discussion today.

So back in the 1980s, a mathematician and a computer scientist

teamed up to found an investment fund which would become known as Renaissance Technologies.

And for the next 40 years, that fund applied a lot of maths,

sitting on top of growing amounts of computing power to, well, beat the market.

The firm's flagship fund, Medallion, established in 1988, has returned in excess of

60 or 70% annually for more than 30 years, and I have been fascinated by Medallion

and their quantitative approach to investing.

And a few years ago, I was introduced to an entrepreneur who was building a new type of

quantitative hedge fund. Now, lots of people do this. There are lots of quantitative funds.

I had invested in one such fund with some good fortune in the mid-2000s,

but something about this story stood out.

This entrepreneur was using a new platform for collective intelligence to build this

trading algorithms. That was the first thing.

Second was that he had been backed by Howard Morgan, one of the co-founders of Renaissance.

And I thought there really had to be something interesting going on here,

...