What If Google Had a Hedge Fund?


A hedge fund uses treasure troves of data and an almost infinite amount of speculation to help investors make extraordinary profits. With a range of aggressive techniques, economic models and a large pool of investment, they are a great way, for a lack of better words, for the rich to get richer.

Though the real number is unknown, estimates suggest Google has literally hundreds of exabytes of data. But with so much data, why hasn’t Google used any of it for a hedge fund? More importantly, what would happen if Google did have one? This article takes a closer look at what would happen if Google did have a hedge fund:

Google’s Profitability Could Be Immeasurable

One factor which makes hedge funds profitable is the sheer amount of data used and analyzed. With greater amounts of data, hedge fund managers could utilize assets under management better and thus profit beyond measure. It’s because Google would have almost all the data in the world. As a result, there really isn’t anything they wouldn’t know about or could protect themselves against.

It May Never Incur a Loss

Many hedge funds underperform as its managers were unable to anticipate change, as they likely didn’t have enough information to forecast, understand, and/or identify the sudden change. Google, with more information than any company on earth, would never run out of data. They would have enough data to analyze and thus use to forecast, identify and mitigate future risks. In other words, if Google had a hedge fund, it may never incur a loss.

Internet Users Would Revolt

While the idea of immeasurable profits may seem like the most lucrative idea ever, the fact is the legalities behind it could virtually cause mass riots. Many website owners store information but they do not share that information with anyone. With such massive amounts of data, keeping it secure during its use could cause massive regulatory, security and legal breaches. As such, it may be a better idea if the idea of a Google hedge fund did not manifest.

The idea of a hedge fund by Google may seem like one of the most profitable ideas to surface but the truth is most people will not be happy. The data which could be used to generate revenue “technically” would be used without the consent of users. That is, unless Google found a hidden way around it. If it did have a hedge fund, it could be the best in the world. However, the idea was shot down years ago over legal concerns and thus may not happen.