Creative LLM use cases - Evaluating new CEOs, summarizing Bloomberg IB chats, charting investor narratives
Hedge fund case studies, tools and hiring trends
Flat Circle tracks creative use cases of LLMs in hedge funds. If you haven’t already, join hundreds of PMs, analysts and engineers reading each week:
Case studies
Former PM at Schoenfeld, Citadel, DE Shaw shares his prompt for evaluating a new CEO (@FundamentEdge)
My take: I like Brett’s prompt because it first asks the model to do a lot of work understanding the history of the situation and what levers might be available new for management. That’s important for sizing the opportunity but for the user to see if the model’s understanding of history aligns with their own.
Australian hedge fund Minotaur Capital says new Claude Opus 4.5 model outperforms OpenAI on its internal research benchmarks (LP Letter)
On the technology front, we’ve spoken extensively about our disciplined framework for testing and evaluating large language models across different use cases. One of the challenges is how quickly the frontier shifts. Recently, we’ve been testing Codex versus Claude for writing and research tasks and have found that Claude (Opus 4.5) is currently delivering superior results. As a result, we’ve migrated a meaningful portion of our internal research workflows accordingly.
My take: New models come out frequently and even the same model can vary in performance week to week. Maintaining an objective benchmark for research summary is necessary to ensure you’re always using the highest quality model. One way I’ve seen this done is having the top LLMs summarize every earnings press release as soon as its posted, then later scoring each one against sellside recaps. A decent proxy for the best model at junior analyst type work.
JPMorgan is cutting ties with proxy advisory firms and will use in-house AI to cast shareholder votes (WSJ)
The bank will use the platform to manage the votes and the AI also will analyze data from more than 3,000 annual company meetings and provide recommendations to the portfolio managers, the memo said, replacing the typical roles of proxy advisers.
My take: Glass-Lewis + ISS is a duopoly because they aggregate voting power on behalf of their institutional clients. LLMs will cost them pricing power but I don’t see why most asset managers will follow suit and build their own.
New tools
New tool uses Gemini to chart the cultural prominence of various narratives over time (Cultural Eigenclusters, The Diff)
My take: I think something similar can be combined with price data to map the narratives around assets. Reach out if you’re interested in exploring.
Interesting job descriptions
Soros is hiring an AI Orchestration Engineer (LinkedIn)
Examples projects include tonal analysis of earnings calls or summarization of Bloomberg IB chats.
Verso Parters, a $600mm AUM SF-based hedge fund, is hiring a founding AI product engineer (Johns Hopkins)
Much of our investment research process is qualitative: expert interviews, reconstructing industry history, understanding how a company got to where it is, pressure-testing narratives, and tracking what would change our mind. The challenge is that the raw material of great research is vast and messy – notes, transcripts, filings, models, datasets, internal memos, and trade history.
Your job will be to build a research and decision-support “OS” that helps us:
execute our research process more effectively,
integrate insights across disparate data sources,
spot biases and patterns in our own analyses and trading behavior,
and ultimately ask better questions, see the ball more clearly, and make better investment decisions.
OpenAI hiring large cap research analyst from buyside or sellside (LinkedIn)
As equity research community’s interest in OpenAI grows, we are hiring a full-time role to engage closely with the analysts. Looking for an experienced large-cap equity research analyst from buy/sell-side. Arguably one of the best seats in the world to understand AI if you are curious. DM me if interested.
Millennium hiring AI engineer - equities technology (MLP careers)
Norway’s sovereign wealth fund hiring engineer for LLM workflows (LinkedIn)
Interesting papers
LLM driven investment strategies lose money over time because they struggle account for regime change (arXiv.org)
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