The search for the perfect model takes funds into new
When scientist Bryan Evans was recruited by a Washington
D.C. consulting group for the U.S. Department of Defense in the
late 1990s to develop systems and software to track military
submarines, he could not have imagined that the algorithms he
created would later be used to time trades for hedge funds.
However, he now knows that these algorithms have a direct
relevance to financial markets. "Whether you are talking about
projecting the location of a submarine, missile trajectories
based on imperfect data, or predicting the success of a trade,
the discipline is much the same. It's all about probability,"
says Evans, who is now director of research and development at
CTA Meyer Capital Management, based in Barrington,
At Meyer, Evans is leading an effort to bringing in new
talent to hone trading models. But the new...