Machine Learning: Beyond the Fear of Unknown Unknowns

Machine learning as a way of managing a portfolio is a "wave of the future" with a lot of sea to cover before it breaks on the shore. Meson Capital Partners has sent its investors an update and summary for 2019 Q3 regarding its managed market neutral fund, and this letter illustrates the forward motion of machine learning. Following a recent restructure, all Meson investments are now in liquid public securities. Management vows that any future illiquid investments will be confined to investment vehicles set up for such assets. Meson's liquid portfolio is about 70% managed by its machine-learning platform, Gravity Technologies.