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49 Will Big Data Enable KFL to Predict the Future? with Dave Sanderson of KFL Capital Management – 1of2

Dave Sanderson on Top Traders Unplugged with Niels Kaastrup-Larsen

“We set out to solve an enormous technology question. The technology risk on day one was very high. To some extent, it wasn’t very rational…” – Dave Sanderson (Tweet)

KFL Capital Management is setting out to do something every financial team on earth dreams about…

The ability to predict the future.

Or at least get it right fifty four percent of the time.

Our next guest on Top Traders Unplugged is the CEO and Co-Founder of KFL. In this episode we explore their trading strategy and uncover the fundamental differences between what they are doing that makes them so different from traditional alternative investment organizations.

Thank you for listening in on our conversation with, Dave Sanderson.

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In This Episode, You’ll Learn:

  • The value of Battle of the Quants – Hosted by Bartt C. Kellermann
  • Transitioning from commercial litigation to wholesale mutual fund vending

    “There is something intuitively intriguing about the investment business.” – Dave Sanderson (Tweet)

  • How Dave Sanderson was exposed to alternative investments in the first place

    “We’re really a data science firm.” – Dave Sanderson (Tweet)

  • The convincing required to get top big data scientists to work on financial challenges
  • The comical story of how carefully big data scientist come to conclusions
  • What Dave Sanderson loves to do when he isn’t working directly on KFL Capital Management
  • How Dave Sanderson sees the deviation between machine learning and systematic trading
  • What it means to exist in a deluge of big data
  • How Dave Sanderson and KFL perceive themselves and the usefulness of labeling
  • Is machine learning a superior method than conventional approaches to trading?
  • About the choice of Krystal as a name for their fund
  • The structuring challenges behind KFL Capital Management and why they are more like a tech firm

    “We’ve had a level of communication with our shareholders that’s probably very unique.” – Dave Sanderson (Tweet)

  • The focus for expanding KFL Capital Management
  • About evolutionary computing and how KFL Capital Management grows with the markets

    “We retrain the model every single day. So the model is using more and more information as its training data.” – Dave Sanderson (Tweet)

  • Is there an environment which would be optimal for Krystal?
  • Is there an environment which would be severely challenging for Krystal?
  • The use of non-parametric modeling and why this type of prediction takes KFL out of most conventional finance sector buckets
  • Plus much more…

Resources & Links Mentioned in this Episode:

This episode was sponsored by Swiss Financial Services:

Connect with KFL Capital Management:

Visit the Website:

Call KFL Capital Management: +1 (416) 849-1925 x212

E-Mail KFL Capital Management:

Follow KFL Capital Management on Linkedin

“Unless he could prove it, from mathematical first principles, he wasn’t going to believe it. It’s like the physicist who says, ‘Sure it works in reality, but can you prove it in theory.” – Dave Sanderson (Tweet)