French systematic equity hedge fund Quantology Capital Management has launched a novel computer-based strategy which trades in the metaverse.
French systematic equity hedge fund Quantology Capital Management has launched a novel computer-based strategy which trades in the metaverse.
Quantology Metaverse is a US equities-focused systematic strategy which trades those companies operating within the metaverse, a virtual ecosystem of assets and companies spanning the internet, artificial intelligence and blockchain sectors.
The esoteric strategy – which is the first UCITS-compliant fund focused on this burgeoning sphere – uses proprietary quantitative models to build portfolio positions in a range of stocks. It aims to outperform the Nasdaq-100 Currency Hedged EUR Total Return Index, and the Nasdaq-100 Net Notional Total Return Index.
The fund has generated an 18 per cent gain in the five months of live trading to the end of November, compared to the CAC40’s 3 per cent return over the same period.
Quantology manages a number of computer-based fund strategies which use market-agnostic, algorithm-based processes to generate returns from behavioural finance indicators, share price trends, and other stock signals within companies’ quarterly earnings data.
Julien Messias, founder and head of R&D at the Paris-based firm, described the metaverse as “the next techno-revolution.”
“Our goal is to provide investors with a pure exposure to this theme,” Messias said.
Much of the metaverse is geared towards the creation, ownership and exchange of virtual assets, such as non-fungible tokens (NFTs). Some of the better-known companies within this investment universe include entertainment products and services firm Roblox, and software solutions-focused Cloudflare and Unity Software.
“In this metaverse universe, we find very volatile stocks. Thus, robust asset management and risk management techniques are absolutely needed in order to generate alpha,” he added.
“With our algorithms and our proprietary databases, we are the best equipped investment manager to properly identify and trade stocks in the metaverse field.”
