Prediction Company was founded in
Santa Fe, New Mexico
Santa Fe ( ; , literal translation, lit. "Holy Faith") is the capital city, capital of the U.S. state of New Mexico, and the county seat of Santa Fe County. With over 89,000 residents, Santa Fe is the List of municipalities in New Mexico, fourt ...
, USA, in March 1991 by
J. Doyne Farmer,
Norman Packard
Norman Harry Packard (born 1954 in Billings, Montana) is a chaos theory physicist and one of the founders of the Prediction Company and ProtoLife. He is an alumnus of Reed College, with a PhD from the University of California, Santa Cruz. Packard ...
, and James McGill. The company used
forecasting
Forecasting is the process of making predictions based on past and present data. Later these can be compared with what actually happens. For example, a company might Estimation, estimate their revenue in the next year, then compare it against the ...
techniques to build
black-box trading systems for
financial market
A financial market is a market in which people trade financial securities and derivatives at low transaction costs. Some of the securities include stocks and bonds, raw materials and precious metals, which are known in the financial marke ...
s, mainly employing
statistical learning theory
Statistical learning theory is a framework for machine learning drawing from the fields of statistics and functional analysis. Statistical learning theory deals with the statistical inference problem of finding a predictive function based on da ...
. In September 1992, Prediction Company entered into an exclusive contract with
O'Connor and Associates, a Chicago
derivatives trading house, to provide investment advice and technology. Soon after O'Connor merged with
Swiss Bank Corporation
Swiss Bank Corporation (French language, French: ''Société de banque suisse''; German language, German: ''Schweizerischer Bankverein'') was a Swiss Investment banking, investment bank and financial services company located in Switzerland. Prio ...
, which later merged with
Union Bank of Switzerland
Union Bank of Switzerland (UBS) was a Swiss Investment banking, investment bank and financial services company located in Switzerland. The bank, which at the time was the second largest bank in Switzerland, merged with Swiss Bank Corporation in ...
(UBS). Prediction Company's contract was renewed multiple times and in 2005 UBS purchased Prediction Company outright. After being a wholly owned subsidiary of UBS, Prediction Company was acquired in 2013 by an affiliate of Millennium Partners, L.P.
Prediction Company was shut down on September 1, 2018. In twenty-six years of operation, Prediction Company had only one losing year, 2007.
See also
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BiosGroup
Notes
References
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Further reading
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External links
* {{official website, http://www.predict.com/
Companies based in Santa Fe, New Mexico
UBS