Quant Global Macro and Crypto Market Investment Management
We aim to assist you in reaching your investment objectives by offering our advanced quantitative investment strategys.
Your Benefits
Flexibility
We offer you actively managed products in all publicly traded asset classes globally, including Equity, Fixed Income, Commodities, Currencies, and Cryptocurrencies.
Uncorrelated Returns
Our range of actively managed products aims to provide superior risk-adjusted returns that are uncorrelated with market conditions.
Disclaimer: Commodity trading carries a significant risk of loss.
Liquidity
Our investments are solely in highly liquid derivative products, offering shorter lock-up periods and redemption notices for your convenience.
Comprehensive
You have the option to select between pooled investment vehicles and separately managed accounts, allowing you to pick the investment structure that suits you best.
We strive to provide uncorrelated market-neutral alpha, aiming to reduce liquidity, custody, and counterparty risk through the use of regulated investment products.
Disclaimer: Commodity trading carries a significant risk of loss.
Crypto Market Neutral
We strive to provide uncorrelated market-neutral alpha, aiming to reduce liquidity, custody, and counterparty risk through the use of regulated investment products.
Disclaimer: Commodity trading carries a significant risk of loss.
Quant Global Macro
Date Collection
During the initial phase of our investment process, we collect data from traditional and cutting-edge sources. To improve our ability to discover new alpha sources, we evaluate various datasets including financial, fundamental, macroeconomic, governmental, and alternative sources. This method allows us to enhance our understanding of financial market dynamics by rigorously testing our hypotheses in subsequent stages of our strategic development framework.
Investment Process
Backtesting
Once the data has undergone comprehensive analysis, our quantitative analysts utilize the scientific method to evaluate financial data by conducting backtesting experiments to test their hypotheses on extensive time series data covering multiple decades. Utilizing extensive historical datasets helps mitigate backtesting bias and enhance the resilience of our investment strategies across various market conditions.
Data Cleaning
Our team is responsible for cleaning the extensive data available to us. Subsequently, we meticulously review and validate the automated cleaning procedures to ensure the data sets are pristine and ready for use by our quantitative researchers.
Pilot Test
Upon identifying successful investment strategies through quantitative research, our team conducts testing in a live pilot production environment using proprietary capital. This crucial phase aims to enhance the likelihood of the strategy's success in actual market scenarios, providing an opportunity to rectify any potential technological issues prior to live production.
Data Analysis
We analyze the datasets from the preceding step using sophisticated statistical methods to uncover alpha signals. This phase serves as a crucial distinguishing factor, given the elusive nature of alpha. Extensive hours dedicated to quantitative research are crucial for uncovering hidden investment opportunities within vast data sets.
Disclaimer: these investment products involve substantial risks of loss
Production
After verifying that the pilot trading returns align with our expectations from the backtest, our investment team greenlights client investment in the new product.
Technology
We invest a substantial amount of monetary and human capital intending to develop a superior strategy and operational infrastructure. This enables us to minimize trading issues in live production and to easily make modifications when necessary to accommodate the requirements of an investment strategy.
Investment Philosophy
Quantitative Research
We invest our clients' capital using a sophisticated proprietary quantitative research approach. By applying the scientific method, we analyze vast historical data to validate our hypotheses and uncover alpha signals. Each of our strategies goes through rigorous backtesting and validation processes before implementation.
Talent
We understand that a primary factor of success for a company resides in its team. For this reason, we always strive to attract and retain the best human talent from advanced traders in the scientific and technological fields. When new members join our firm we always make sure that they fit into our culture and can provide a significant contribution to the improvement of our business
Risk managment
Our risk management framework has the objective of preserving capital for our clients
Disclaimer: there is no guarantee that our risk management framework will prevent losses to occur or will be effective in managing all the risks herein reported.
Risk Management Framework
Ensuring our clients' financial security is our top priority. To achieve this, we've crafted a robust risk management framework that diligently monitors and controls a wide array of risks, aiming to maintain them within predetermined thresholds.
Market Risk
Market risk refers to potential losses stemming from adverse market price movements. This risk is typically assessed by gauging the volatility of assets within a portfolio, with further categorization into equity, interest rate, currency, and commodity risks based on the asset classes involved.
To mitigate market risk, our automated risk management technology consistently monitors portfolio volatility and adjusts holdings as needed to align with predetermined thresholds established by the investment committee.
Operational Risk
We invest a substantial amount of monetary and human capital intending to develop a superior strategy and operational infrastructure. This enables us to minimize trading issues in live production and to easily make modifications when necessary to accommodate the requirements of an investment strategy.
Credit Risk
Credit risk, also referred to as counterparty risk, encompasses the potential for financial losses resulting from a borrower or counterparty's inability to meet payment obligations. Within our context, we face credit risk from counterparties safeguarding our investment capital, such as our prime brokers and custodians.
To oversee our credit risk effectively, our team periodically assesses our current counterparties to ensure our exposure remains within predefined limits. Furthermore, we strive to diversify our relationships across multiple counterparties to lessen our financial vulnerability to any single entity.
Asset Class Risk
Asset class risk refers to potential losses from holding a portfolio heavily concentrated in one asset class. This risk commonly arises in hedge fund strategies such as equity long-short, credit, convertible bonds, merger arbitrage, activist investing, or commodity trading focused on specific asset classes. As returns of a security are significantly influenced by systemic factors affecting its asset class (measured by beta), previous investment entities often face excessive risks tied to a particular asset class unless they hedge market risk exposure with appropriate derivatives.
Our goal is to mitigate asset class risk by diversifying across various strategies and products that are not perfectly correlated, spanning Equity, Fixed Income, Commodities, Currencies, and Volatility.
Execution Risk
Execution risk arises from the potential for a transaction price to differ between the investment decision and its actual execution. This risk stems from various factors, including delays in decision-making by discretionary investment managers or the necessity to minimize market impact when trading illiquid financial instruments for large institutional investors.
To manage execution risk, we employ automated execution algorithms that seize investment prospects promptly.
Sector Risk
Sector risk arises from investing in specific market sectors such as technology or biotech. This risk is prevalent in equity and credit hedge funds concentrating on particular industries, as well as in venture capital and private equity firms heavily invested in the technology sector. To mitigate sector risk, our goal is to globally allocate capital across various asset classes and diverse equity sectors through a well-rounded portfolio.
Liquidity Risk
Liquidity risk pertains to the potential scenario where a financial asset cannot be swiftly traded without causing significant market disruption due to limited market participants. This issue is particularly prevalent among alternative investment managers, such as private equity and venture capital firms engaged in private equity or debt securities, as well as hedge funds dealing in illiquid and unconventional securities.
To mitigate our liquidity risk exposure, we concentrate the majority of our capital in publicly traded investment products on regulated exchanges that adhere to specific liquidity and trading volume criteria.
Margin Risk
Margin risk entails potential losses from broker margin calls, leading to position liquidation due to insufficient capital. Our investment strategies involve trading leveraged derivative instruments, intensifying margin risk. To mitigate these risks, clients must adequately fund their investments to reduce margin exposure.
Geographic Region Risk
Geographic region risk refers to potential losses stemming from the heavy investment focus on a specific geographic area. This risk is common in hedge funds and alternative investment managers that specialize in regions like North America, Europe, the Developed World, or Emerging Markets.
To counteract this risk, we diversify our investments globally across various public exchanges and investment products worldwide.
Investment Technology
We invest in technology with the objective of seamlessly executing our investment strategies
Trading Technology
Our exclusive trading technology facilitates the deployment of investment capital. Having rigorously backtested our strategies over multiple years and validated their profitability, we have internally developed a substantial portion of our investment technology. This enables us to uphold control over execution quality and fulfill the requirements stipulated by our trading algorithms.
To bolster our quantitative research endeavors, our team has created automated tools in-house. These tools aid our research team in efficiently identifying new sources of alpha within vast datasets, enhancing our research process effectively.
Data Cleaning Scripts
A prevalent challenge in data management is the presence of errors within datasets, often lacking the required structure for quantitative researchers and analysts. Consequently, data cleansing becomes imperative. In the past, when data volumes were limited, manual cleaning sufficed. However, the current vast data volumes necessitate the adoption of automated solutions by organizations.
To address the substantial data cleaning requirements and mitigate potential errors, our team has successfully integrated diverse automated tools. These tools assist our quantitative analysts in conducting thorough analyses and curbing the occurrence of flawed data, thereby mitigating biased backtesting and inaccurate conclusions.
Data Retrieval Technology
The initial phase in implementing a fresh quantitative investment strategy involves data retrieval. Previously, data was scarce due to inadequate storage and processing methods, but technological progress and reduced storage costs have vastly increased data volumes across industries. The current dilemma lies in data overload, making it challenging for humans to analyze effectively, giving rise to the realm of Big Data.
To aid our team in uncovering new alpha sources, we harness Big Data by exploring diverse datasets. These encompass historical financial time series, company fundamentals, macroeconomic data, and advanced alternative datasets. We continually innovate technological tools to efficiently retrieve and store large historical datasets in support of our teams' needs.
Disclaimer: these investment products involve substantial risks of loss.Analysis Tools
After completing data cleansing, our team can initiate data exploration using the scientific method to identify patterns, develop hypotheses, and rigorously test them. When analyzing datasets comprising millions of records, our analysts necessitate sophisticated technological tools to swiftly execute complex queries and statistical analyses, visualize patterns, and uncover relationships across diverse datasets. Throughout the analysis phase, pivotal technologies utilized encompass advanced statistical analysis methods, machine learning techniques, and advanced visualization and pattern recognition tools.
Backtesting Technology
Upon identifying potential new sources of alpha, our team conducts extensive backtests using historical data to enhance the robustness of discovered signals. The backtesting phase is notably time-consuming due to the vast historical data involved, necessitating sophisticated algorithms and ample computing power for swift completion.
To meet the speed demands of this phase, our team of quantitative developers and system administrators ensures the development of efficient testing tools and the provision of adequate computing resources for prompt test execution.
Disclaimer: these investment products involve substantial risks of loss.
Monitoring Technology
Upon implementation of a strategy and transmission of orders to prime brokers and exchanges, our team diligently oversees the investment strategies to ensure seamless operation and promptly intervenes as necessary.
To support our trading team's operations, our developers aim to create new monitoring tools to enhance the oversight of our investment strategies.
Execution Algorithms
Upon validation of hypotheses by our team through statistical analyses and backtesting, the subsequent phase involves deploying the new investment strategies into production for execution.
To execute our investment orders through prime brokers, exchanges, and custodians, our technology team of quant developers implements execution and network algorithms. These algorithms facilitate our funds' connectivity with counterparties, enabling the execution of investment strategies. Furthermore, our system administrators and engineers ensure seamless connectivity and promptly address any network or technological issues that may arise.
Our quantitative team is dedicated to conducting regular research on market microstructure to implement new execution algorithms aimed at minimizing our market impact and execution costs.
Disclaimer: these investment products involve substantial risks of loss.Backup & Disaster Recovery Systems
Our team aims to evaluate our backup and disaster recovery system to ensure alignment with predefined service criteria established by management. This assessment is crucial to mitigate potential disruptions in our investment operations caused by technological issues like power outages, loss of internet connectivity, network failures, or server breakdowns.
