The Categories of Traders In Hedge Funds

By Andreas Roell


I have been lucky enough in my career to be part of new phases of innovations in long-established industries.  At the start of my career, the Internet first emerged and the dot com companies began appearing. Then, I founded one of the first digital marketing agencies during a time when advertisers put all of their money into TV or radio commercials.  Later, I incepted one of the first VOD platforms in the Middle East when the entire Arabic World was glued to TV screens.  All of these experiences had several common themes, but the one I would like to highlight today is the fact that individuals (i.e. consumers, users, customers, etc.) find it very difficult to categorize a new offering in relation to what they are familiar with.


Fast forward to today and I am having the same experience in the asset management and hedge fund world. As you probably know, AlphaTrAI is an AI-based asset management firm. In our many conversations with investors, I have noticed a natural tendency and desire to label us somewhere within the categories that they are familiar with.  Of course, this is not the first time a firm similar to ours has arrived on the scene. It happened when technical traders started to arrive and also with the advent of quantitative funds.


As a result, a clear explanation of how we classify into other categories of hedge funds has helped us make faster progress. So, I thought I would share with you how we categorize the various hedge fund offerings.



I recognize that this might be a simplified view, however, I have learned that a simplified approach to a more complex discussion makes a lot of sense.  Since the space is constantly evolving, it would be great to get from you any ideas to further build this out. Who knows? Maybe the power of social media makes our collective end product a “standard” or commonly adapted communication tool.