$18 billion hedge fund Magnetar plans to completely replace human analysts with hundreds of AI agents According to Beating monitoring, Magnetar Capital, a hedge fund managing $18 billion in assets, plans to launch a new fund later this year. It will completely discontinue human analysts in the research phase and instead use hundreds of AI agents to search for investment leads, analyze individual stocks, and predict trends. The final transaction decision is still made by humans. The new fund does not require a large number of researchers to conduct bottom-up basic research, and the responsibilities of Magnetar employees have also shifted to the development and maintenance of AI underlying systems. The system architecture was built by Trevor Mottl, the AI quantification supervisor. Mottl previously served as the risk manager for long and short stocks at Balyasny, and was responsible for AI investments at Man Group and Walleye. The new fund strategy tends to be long and hold for the long term, allocating only a very small proportion of funds to capture millisecond level trading signals. The inference layer of the system serves as the command center, responsible for scheduling hundreds of intelligent agents to collaborate at different time points. The entire system runs on multiple NVIDIA servers, filtering market noise through high-density signal processing and capturing potential pricing patterns. There have been similar attempts in the quantitative hedge fund industry recently. Former Coatue investment manager Rahul Kishore launched a fund this year that is jointly managed by three humans and an AI agent named Eve. However, the actual effectiveness of AI investment is still controversial within the industry. In a recent simulation test on 8 cutting-edge models, most systems recorded losses. Magnetar was founded in 2005 and primarily invests in alternative credit. The new fund is Magnetar's first AI investment tool launched in the secondary market. Magnetar launched a venture capital fund focused on the field of generative AI in 2024. [Original link]