BurryTracker: Hedge funds are racing to profit from the weather. Yes, you read that right. They’re hiring meteorologists, building AI forecasts, and betting billions on extreme weather. Here’s how it works and why scientists are jumping ship to huge firms:
Hedge funds like Squarepoint Capital, Jane Street, and DV Trading are expanding teams of weather experts.
Why? Volatile commodity markets, especially natural gas and agriculture, are highly weather-dependent.
Extreme weather = massive price swings.
With the US government cutting federal science jobs, a wave of weather experts are moving to Wall Street. Hedge funds increased weather-related hires by 23% in 2024. Top salaries are now up to $1 MILLION.
Citadel is leading the charge.
They now employ two dozen weather specialists to supercharge their commodities trading especially natural gas.The goal: Predict extreme weather events before the competition and trade ahead of supply and demand shocks.
AI is playing a role in this as well.
Firms like Millennium and Balyasny are using AI-driven forecasting to gain an edge. This tech helps funds position trades hours or days ahead of rivals by predicting hurricanes, heatwaves, or droughts.
But it’s not all sunshine and rainbows.
Hedge fund meteorologists face intense pressure and long hours now that they are working with big firms. Some scientists raise ethical concerns about keeping critical weather data private potentially impacting public safety.
Private demand is booming and climate scientists are rethinking career paths - some see hedge funds as the future of applied meteorology.