Quantamental Investing

Our Quantamental models rely on financial and alternative data to predict stock market performance and to build innovative investment strategies.

Dedicated to Asset Management, Family Offices, Hedge Funds

We partners with asset managers and hedge funds to deliver high-performing, end-to-end AI-powered strategies, leveraging our superior machine learning technology and a solid factor investing methodology.

Fundamental VS Quantitative investors

On one side were the fundamental investors, on the other side the quantitative ones. On the one hand the research and instinct of Warren Buffett, on the other hand James Simons’ machines at Renaissance Technologies. Since the crisis of 2008, fundamental active investors have struggled to generate substantial alpha, also due to the low-cost competition of the passive products (e.g. ETF).

Quantitative investors have grown a lot, have come to attract 1.5 trillion Dollars, but have often come up against changes in economic paradigm (for example quantitative easing, Brexit, the war of duties) and with a distribution of returns on assets financial companies that did not consider the problems of tail risk with sufficient attention, namely the occurrence of exceptional events from a statistical point of view (Taleb’s black swan).

The two worlds hardly spoke.

Quantamental Hybrid Strategies

Now the Artificial Intelligence makes it possible to merge the two investment styles and the Quantamental hybrid strategies are emerging. Quantamental is the union of computing power with increased human intelligence.

The Quantamental revolution is driven by three changes from the past five years:

1

Cloud

the cloud with its storage capabilities, access to powerful computational resources at low cost and scalability

2

Alternative Data

the availability of a huge amount of additional data compared to traditional financial statements, half-yearly, stock market prices: these are the so-called Alternative Data coming from digital environments such as social networks, blogs, forums, e-commerce platforms, maps

3

Machine Learning

advances in the field of machine learning, the so-called machine learning, indispensable for identifying correlations and causality in the increased amount of data and for providing insight and predictions quickly based on an extremely varied dataset

Quantamental investor

The quantamental investor is a fundamental medium-term investor who knows he cannot compete on execution speed. To have higher returns at reduced costs he uses the three innovations just described that make him smarter, he reduces the emotional side of the investment and increases reactivity to changing market, geopolitical and regulatory conditions.

Quantamental methodology

Our Quantamental methodology combines traditional data and alternative signals from different sources using machine learning techniques that allow us both to optimize the risk-return profile of portfolios and to provide accurate predictions on single financial assets. This derives from the fact that our team combines digital and financial expertise in equal measure and is focused on expanding the data set available for prediction models as much as possible.

The Quantamental investor has the ability to analyze the variables, understand which ones and how many have a predictive value and find out the relationship between cause and effect on financial assets. Capacity that until now has been almost impossible in fully automated models.

We tend to avoid brute force computing solutions, we prefer a human supervised approach and therefore focus primarily on selecting factors and their predictive value.

We can provide you with:

Our proprietary investment model

Custom investment models

The added-value of Alternative Data for Asset Management

Find out more about our investment strategies to beat the market and get alpha