News / US / cnbc
Hedge Fund Founder Brian Kelly Pivots to Fully Automated AI-Driven Trading Firm
Technology Services · Internet Software/Services · cnbc · 2026-09-08
MS, JPM, GSBD
Former crypto hedge fund manager Brian Kelly has launched Bracket22, a trading firm that replaces human staff with specialized AI agents to slash operational costs.
What Happened
AI-Powered Operational Efficiency: Brian Kelly has transitioned from traditional hedge fund management to Bracket22, a firm that utilizes autonomous AI agents to handle trading tasks. By replacing human staff with specialized software, Kelly has reduced his annual labor and overhead expenses from approximately $5 million to under $40,000.
Specialized Agent Architecture: The firm employs distinct AI agents, such as 'Steffi' for technical analysis and 'Desmond' for quantitative strategy, which operate under the oversight of a central 'Houston' agent. Kelly maintains human control by using these tools to provide unbiased data points, which he then synthesizes to make final investment decisions.
Broader Wall Street Adoption: The shift at Bracket22 mirrors a larger trend in the financial sector, where major institutions like JPMorgan Chase and Morgan Stanley are increasingly integrating autonomous agents into their workflows. While some firms are aggressively pursuing automation, others, including Goldman Sachs, have expressed caution regarding the potential degradation of human analytical skills.
Future of Workforce Productivity: Despite his own success in replacing staff, Kelly argues that the most significant potential for AI lies in augmenting existing human teams rather than total replacement. He suggests that integrating these technologies can boost the productivity of a 100-person workforce to the equivalent output of a thousand employees.