WeWork mania, Citigroup winds down a secretive $1 billion business, real-estate data changing the game, Business Insider – Business Insider Singapore

A top Citigroup executive is departing as the bank winds down a secretive $1 billion business amid competition from private equity

A little-known principal-investing team at Citigroup is being wound down, and the executive who led the group has left the firm, according to people familiar with the matter.

What remains of Citi Credit Opportunities, a vestige of pre-financial-crisis banking that had $1 billion in its balance sheet to make loans to small and midsize companies, is being absorbed into the bank’s broader financing operation.

The boom in buy-side private-lending shops, combined with a prolonged run of low interest rates, has made this type of business more difficult and less lucrative for banks than in years past.

From an army of traders in Long Island to quants around the world: What’s coming next for hedge-fund powerhouse Schonfeld Strategic Advisors

The billionaire Steven Schonfeld’s hedge fund was quick to adopt algo-trading strategies and now has 75 portfolio managers around the world.

Schonfeld Strategic Advisors has been open to outside capital for just over three years and has bold aspirations. Its chief investment officer says the goal is to be the world’s premier equities hedge fund.

The firm keeps to its roots, though, with 50 old-school traders still working in Long Island, about half of whom have been with the firm for more than 15 years.

‘We see everything that happens’: Real-estate data is changing the game, and execs at Cresa, Niido, and other firms explain why

While other industries are jumping into machine learning and artificial intelligence, and data scientist has been dubbed the best job in America, real estate still has a reputation for handshake deals and decisions made on gut instinct.

But companies that revolve around real estate are quickly finding ways to adapt to a digital world. Documents that used to live in a file cabinet are being digitized. Zillow, Redfin, and other “i-buyers” are closing on homes within a week of the application. Venture-capital money is flooding into “proptech” startups that marry real estate and technology.

Business Insider spoke with executives at companies ranging from short-term-rental firms to commercial real-estate brokerages about the ways data will change how we work and live and the way that real-estate pros do their jobs.

Big Wall Street banks are quietly forming a group to explore the hidden risks in AI, and it shows how much the finance industry still has to learn about the technology

Wall Street is as competitive as it gets, but sometimes everyone benefits from working together. And when it comes to understanding the intricacies of artificial intelligence, some of Wall Street’s largest financial firms have recognized the benefit of putting their heads together.

Citi and Morgan Stanley are among a group of large global banks banding together to create a working group examining the risks they may face when using artificial intelligence, according to three sources involved in the project.

While it’s still early days, and specific goals for the group haven’t been established, the hope is that by working together Wall Street will develop a better understanding of how best to use the innovative technology appropriately.

What it’s like to launch a hedge fund when even the biggest managers are struggling and long-short equity is a ‘dirty word’

Launching a hedge fund in 2019 hasn’t been easy, and several people who are either raising capital or have recently launched gave us an inside look at the process.

More funds have been liquidated instead of launching, and even the biggest funds are struggling to keep assets right now.

“General long-short equity can kind of be almost a dirty word,” one person told Business Insider, and new launches are better off with differentiated strategies that can help them stand out.

This content was originally published here.

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