Why Hedge Funds Are Building In-House AI Trading Models

Lucas and Luna explore the quiet revolution inside hedge fund technology stacks: proprietary AI models trained on decades of in-house trading data, not generic LLMs. With the S&P 500 down 2.8% in five days and the VIX spiking 34% to 21.51, hedge funds are doubling down on custom systems that can adapt faster than off-the-shelf AI. Lucas breaks down how one mid-sized multi-strat firm spent two years and $40 million building a model that now generates 15% of its alpha. Luna questions whether this arms race favors only the largest funds — and what it means for allocators trying to pick winners. #AI #HedgeFunds #QuantTrading #MachineLearning #ProprietaryModels #AlphaGeneration #VIXSpike #S&P500 #TechnologyArmsRace #MultiStrat #TwoSigma #Citadel #DE Shaw #InvestmentStrategy #DataScience #Finance #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo