--- title: Mind-Blowing Tool Used by Hedge Funds Costs Just $10 description: Thanks to cloud computing, it's never been cheaper to crunch data in the pursuit of profit. authors: - name: Susie Poppick url: https://money.com/author/susie-poppick/ at_money_since: 2013 articles: 117 covers: - Investing - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Housing - Identity Theft - Insurance - Lifestyle - Loans - Personal Finance - Retirement - Shopping - Taxes - Technology social: - https://x.com/susiepoppick former_staff: true published: '2015-05-20T18:57:15.000Z' modified: '2024-04-02T05:01:53.000Z' section: Investing tags: - Amazon - amazon cloud - Artificial Intelligence - Braxton McKee - cheap - cloud - Cloud Computing - Computing - expensive - fees - hedge fund - hedge funds - pubdesk - server - ufora word_count: 214 canonical: https://money.com/hedge-funds-data-analysis-ufora/ type: Article source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![532029221](https://img.money.com/2015/05/532029221.jpg) If you're a hedge fund looking to crunch massive quantities of data, it's generally cheaper to pay for space a la carte on Amazon's cloud than invest in million-dollar hardware. That's the premise behind a spate of new finance-focused data shops turning out software that runs on the cloud. Ufora, a company [profiled in *Bloomberg Business,*](http://www.bloomberg.com/news/articles/2015-05-20/the-10-hedge-fund-supercomputer-that-s-sweeping-wall-street) designs software that can process a trillion data points in minutes for the cost of a sandwich. The technology is complex and involves a type of machine learning, or artificial intelligence, but computing power has become cheap enough that Ufora founder Braxton McKee can analyze a big market data model using only $10 worth of capacity on Amazon Web Services. Ufora's hedge fund [clients](http://static1.squarespace.com/static/5409dcf3e4b0b42412d20999/t/540f54ffe4b0ca5d483c1e07/1410290943690/Ufora_CaseStudy_Finance.pdf)—like all hedge funds today—have good cause to want to keep costs low. These privately-offered investments, which typically court only those who can invest [at least $1 million](http://www.investopedia.com/articles/02/111302.asp), are having a tough time holding investors' interest these days. That's partly because their high fees have become harder to justify given that recent returns have actually [trailed](http://www.nytimes.com/2015/02/27/business/hedge-fund-returns-falter-yet-money-continues-to-flow-in.html) those of cheap index fund-based portfolios, and performance is [increasingly in step](https://twitter.com/SusiePoppick/status/590263444420571136) with that of benchmarks, meaning that mangers aren't adding as much value or diversification. **Read more: [Why Should I Invest?](https://money.com/collection-post/why-should-i-invest/) Investment Advice From a Nobel Prize-Winning Economist** ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/hedge-funds-data-analysis-ufora/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Investing", "item": "https://money.com/investing/" }, { "@type": "ListItem", "position": 3, "name": "Alternative Investments", "item": "https://money.com/alternative-investments/" }, { "@type": "ListItem", "position": 4, "name": "Mind-Blowing Tool Used by Hedge Funds Costs Just $10" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/hedge-funds-data-analysis-ufora/#webpage", "url": "https://money.com/hedge-funds-data-analysis-ufora/", "name": "Mind-Blowing Tool Used by Hedge Funds Costs Just $10", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2015-05-20T18:57:15.000Z", "mainEntity": { "@id": "https://money.com/hedge-funds-data-analysis-ufora/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/hedge-funds-data-analysis-ufora/#breadcrumb" }, "dateModified": "2024-04-02T05:01:53.000Z" }, { "@type": "Article", "headline": "Mind-Blowing Tool Used by Hedge Funds Costs Just $10", "articleSection": "Investing", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2015/05/532029221.jpg", "width": 4843, "height": 3611, "caption": "532029221" } ], "author": [ { "@type": "Person", "name": "Susie Poppick", "url": "https://money.com/author/susie-poppick/", "@id": "https://money.com/author/susie-poppick/#author", "image": "https://img.money.com/2014/05/14-05-21_bio_author_poppick.jpg?quality=85&w=190&h=190&crop=1", "email": "susie_poppick@moneymail.com", "sameAs": [ "https://x.com/susiepoppick" ] } ], "publisher": "https://money.com/#organization", "datePublished": "2015-05-20T18:57:15.000Z", "description": "Thanks to cloud computing, it's never been cheaper to crunch data in the pursuit of profit.", "abstract": "Thanks to cloud computing, it's never been cheaper to crunch data in the pursuit of profit.", "@id": "https://money.com/hedge-funds-data-analysis-ufora/", "inLanguage": "en-US", "dateModified": "2024-04-02T05:01:53.000Z", "wordCount": 214, "keywords": [ "Amazon", "amazon cloud", "Artificial Intelligence", "Braxton McKee", "cheap", "cloud", "Cloud Computing", "Computing", "expensive", "fees", "hedge fund", "hedge funds", "pubdesk", "server", "ufora" ], "about": [ { "@type": "Thing", "name": "Investment", "sameAs": [ "https://en.wikipedia.org/wiki/Investment" ] }, { "@type": "Thing", "name": "Alternative investment", "sameAs": [ "https://en.wikipedia.org/wiki/Alternative_investment" ] } ] } ] } ```