Hedge Invest SGR, an independent asset manager, specialised in alternative investments, has broadened its range of UCITS funds with the launch of HI QuantWave, a systematic quantitative fund with daily liquidity.
The fund aims to generating alpha regardless of market conditions, through an innovative proprietary system of Artificial Intelligence (AI), based also on the analysis of Big Data coming from sources such as Twitter.
The strategy – a multi-strategy and multi-asset one – with an annual performance target of 10-15 per cent net of fees and a volatility target of 10-12 per cent, seizes on the potential offered by two innovative phenomena, Big Data and AI. Thanks to a proprietary technological platform that takes advantage from the power of calculation of the cloud, HI QuantWave simulates the job of hundreds of traders, each with a specific investment style and asset class focus, by allocating capital in an ideal manner, basing not only on “traditional” data, but also on the so-called non-structured information, that is to say all those data that do not coincide with a number, such as textual data (sourced from Twitter or from other real-time information providers) or satellite images. This information is converted into sentiment indicators, in order to gather those little nuances of the market that are as relevant as prices and macroeconomic information.
This systematic approach allows the managing team of HI QuantWave to identify the non-linear dynamic relationships between financial variables and fundamentals, in order to build short to medium term strategies, even in less liquid markets, such as credit.
HI QuantWave is managed under mandate by Numen Capital on behalf of Hedge Invest, by Marco Jean Aboav (pictured), and Alessandro Barison, co-fund managers and specialists in the quantitative strategies area for nearly a decade, since they were students at Milan Polytechnic, attending a BA and Master Degree in Industrial Engineering. Aboav is currently associate professor in Financial Technology at Cass Business School in London. Aboav and Barison are colleagues at Numen Capital, an alternative asset management company that also holds the mandates of two more strategies of Hedge Invest: HI Numen Credit Fund (a long/short multi-strategy credit strategy) and HI Bear Rates Fund (a strategy specialised on going structurally short on fixed income).
Aboav, co-fund manager of the HI QuantWave Fund, says: “The market of systematic and quantitative strategies is crowded and competitive. Therefore, we are particularly proud to launch a really unique strategy, which leverages on several sources of alpha and natively incorporates an innovative system of Artificial Intelligence that relies also on non-structured data such as Twitter, in order to identify short to medium term trading opportunities. Unlike traditional systematic black box funds, our fund is easy to understand. Investors will have the chance to appreciate through our newsletter a very intuitive and innovative approach when presenting the results of a systematic multi-asset sophisticated strategy”.
Alessandra Manuli, CEO of Hedge Invest SGR, adds: “Financial markets change constantly, and so does the world where our investment strategies act: trends such as Big Data and Artificial Intelligence are a reality. Thanks to our history as alternative investors and our vision always oriented towards the future, it was natural for us to work aiming at offering investors a sophisticated and innovative strategy such as HI QuantWave, further broadening our UCITS platform on markets segments where we are truly able to add value”.