Roy Niederhoffer's use of computer neuroscience to sniff
out panic is proving a winning strategy these days
By Irwin Speizer
Roy Niederhoffer has two passions, both of which become
abundantly clear in the midtown Manhattan headquarters of his
eponymous hedge fund firm, R.G. Niederhoffer Capital
Management. A onetime computer whiz kid, he remains a tech wonk
who uses computational neuroscience to guide his algorithms.
His 39th-floor office is a high-tech showplace with about 400
computers for a staff of 38, including a curving wall in the
firm's trading room of 163 blinking screens displaying price
data on global currencies, interest rates, stocks and bonds,
many of which are updated every second.
Then there's his glass-walled office, outfitted with a 5' 10"
Steinway piano. An accomplished pianist, Niederhoffer can, on
command, coax from the keyboard just about any tune, from an
obscure Broadway show number to vintage Motown. When...