Banca Consulia has launched Dynamic Alternative, a new discretionary mandate in partnership with MDOTM, a fintech that develops AI-driven investment strategies.
The mandate studies the performance of a vast panel of hedge funds and applies a proprietary methodology to replicate them by investing in liquid instruments. Banca Consulia’s Dynamic Alternative allows its clients to invest in alternatives, a typical institutional investors asset class, thanks to a replication process that uses liquid ETFs.
“We launched with MDOTM a truly unique and innovative product for the Italian financial market” says Antonio Marangi, CEO of Banca Consulia. “The Dynamic Alternative makes hedge funds, [usually] characterised by high costs and barriers to entry, accessible to all our clients. This discretionary mandate allows us to differentiate clients’ portfolios without being subject to the typical risks of investing in hedge funds. The partnership with MDOTM began over a year ago with Total Return Alternative Plus, and the Dynamic Alternative continues Banca Consulia’s capability to offer its clients cutting-edge investment solutions, able to respond to the growing financial market complexity.”
“I’m very proud of what we’ve done with Banca Consulia,” says Tommaso Migliore, CEO and Co-Founder in MDOTM. “Now, it is definitely possible to invest by applying an effective hedge fund replication strategy. In recent years we have seen important changes in financial markets. On the one hand Hedge Funds have become more transparent, both in terms of quality and quantity of data available to investors, on the other hand, the rapid growth of ETF markets has made it possible to invest in specific risk premia, allowing, much better than in the past, exposure to the same performance drivers as the Hedge Funds. Technology has improved too: using AI allows us to analyse much more data and thus manage the financial market complexity more efficiently.”