Tungsten Capital positions AI-powered fund as an alternative for fixed-income investors
Fifty per cent of investors believe that government bonds have currently lost their function as a counterbalance to stocks and as a safe haven, according to a survey by investment company Tungsten Capital.
Many investors are assessing real assets such as real estate and precious metals, primarily gold, while others are increasing the proportion of equity in their portfolios. These asset classes though, usually have a significantly higher risk profile than classical fixed income investments.
To address this issue and provide a counterweight to stocks, Tungsten Capital offers a solution based on artificial intelligence (AI) that can serve as an alternative to bonds. The short-term CTA Tungsten TRYCON AI Global Markets (ISIN: LU0451958309) can go both long and short in a multi-asset universe of 60 markets. While correlation of both real estate markets and common liquid alternatives with the European stock market is 0.8 and above, the quantitative fund seeks zero correlation with other asset classes. In contrast to illiquid alternatives, it is tradable on a daily basis.
“We are evaluating millions of data points every day. The fund enables investors to benefit both from bullish and bearish market periods”, says Pablo Hess, portfolio manager of the Tungsten TRYCON fund.
The fund has returned 6.22 per cent in 2020. Even during the difficult period of the global Covid-pandemic outbreak, the fund delivered gains of more than 5 per cent.