Singapore-based alternative asset manager Vulpes Investment Management has launched a new AI/ML-powered tail risk strategy fund, marking a deepening of its partnership with Noviscient’s technology platform, FundBox.
The new strategy is designed to act as a low-cost hedge against equity market shocks, with a particular focus on Asia-Pacific markets. The fund targets positive annual returns in normal market environments and a return of more than 20% (net of 20% performance fees) during sharp equity sell-offs.
Vulpes is leveraging Noviscient’s FundBox.ai, a digital fund structuring platform, to launch and manage the new vehicle under Singapore’s Variable Capital Company (VCC) regime. Noviscient, a MAS-regulated, multi-strategy quant manager, will serve as the umbrella manager for the fund.
The strategy, which aims to achieve greater than 0% return annually, and greater than 20% return net of 20%
performance fees in equity market sell-offs, blends machine learning-driven signal generation with traditional and forensic equity research to build a dynamically weighted portfolio. The structure consists of a long-short APAC equities sleeve that funds a tail risk options portfolio, creating a barbell profile aimed at delivering negatively correlated returns during periods of market stress.
In a press statement, Vulpes said: “Our goal with VaiL/S TR is to offer institutional investors a cost-effective ‘put option’ on equity markets — one that performs when protection is needed most.”
The fund is targeting an aggregate raise of $250m across three share classes.
Vulpes, formerly Artradis Fund Management, was founded by Stephen Diggle, in 2002. The firm The firm emphasises co-investment and alignment of incentives with its investors.
