As the financial markets experience a period of unprecedented and continuing uncertainty, a select few investment funds are enjoying strong positive returns.
In coronavirus-infected volatile markets, advanced algorithms give fact-based early warnings
One of the top percentile performers is HighGuard Capital’s award-winning Guardian Opportunity Fund, LP, which has achieved success by harnessing the breakthrough forecasting analytics engine from AlgoDynamix Ltd.
This engine gives early warning of directional price movements hours (even days) before the actual market movements, using advanced mathematical analysis, developed through many years of academic research at the world leading University of Cambridge, United Kingdom.
Although the market and many funds are down by 15% to 25% since February, Guardian Opportunity’s returns have continued to outperform the benchmarks. By incorporating AlgoDynamix’s forecasting algorithms into its trading models, the Fund is one of the few hedge funds showing profits so far this year. It has outpaced both the S&P 500 and Dow Jones Industrial Average by an estimated +21.76% and +23.20%, respectively, year-to-date, as of March 31.
Dr Ronjon Nag, renowned inventor and founder of R42 Group said: “The past few months have demonstrated how AlgoDynamix analytics have augmented decision-making with tangible insights. It is great to see such low volatility returns can be obtained by replacing emotion with quantitative signals.”
With the current market turmoil, numerous alternative data sources and yet more backward-looking factor models are generating conflicting and confusing guidance, at a time when market professionals are seeking quantifiable metrics above all else. AlgoDynamix’s service does not offer theoretical backward-looking risk guidance. Instead it crunches real-time market order book data to give clear forecasting insights based on the behaviour of other market participants.
As Michael Williams, Founder and CIO of HighGuard and its flagship Guardian Opportunity Fund said: “World markets are experiencing an unprecedented period of volatility. The wild daily price swings over the past few weeks have increased anxiety levels of even the most seasoned professional investors. Elevated anxiety levels can lead to fearful, emotion-based trading, which can create a vicious cycle that further increases volatility. The clear, directional forecasting from the AlgoDynamix analytics gives us a data-driven window into how major market participants are behaving. We try to utilize that quantifiable, actionable insight to capitalize on short-term market moves. Data knows no fear.”
The team at AlgoDynamix has formulated an algorithm that analyses the dynamic behaviour of market participants in real-time, instead of relying on historical data or previous disruptive events. This enables the analytics engine to detect market anomalies and anticipate directional price movements ahead of time.
The machine learning analytics, when combined with existing human expertise, augments the decision-making capabilities in most types of markets and even more so during volatile market conditions. Since alerts are issued in advance, it allows its users to make all the critical, make-or-break decisions before major market movements. More importantly, this breakthrough also presents a golden opportunity for all quantitative (and fundamental!) funds that seek market outperformance and/or lower risk exposure.
The Information in these sections is provided for information purposes only. The Information is not intended to be and does not constitute financial advice or any other advice, is general in nature and not specific to you. Before using any of the information above you should seek the advice of a qualified and registered securities professional and undertake your own due diligence. None of the information in this document is intended as investment advice, as an offer or solicitation to buy or sell any products or services, or as a recommendation, endorsement, or sponsorship of any security, company, or fund. The above-mentioned companies are not responsible for any investment decision made by you. You are responsible for your own investment research and investment decisions. The companies will not be responsible for updating any information contained within these documents and opinions and information contained herein are subject to change without notice.
AlgoDynamix risk analytics provide advance warning of major directional market movements. Unlike other solutions, the underlying machine learning technology does not require any historical data or knowledge of any previous disruptive events. Our products are used by investment banks and asset managers including CTAs, hedge funds, family offices and other managed funds. AlgoDynamix works with clients such as HighGuard Capital and the family office of Dr Ronjon Nag and provides them with clear actionable and quantifiable market insight analytics to augment their trading and investment performance. For more information on AlgoDynamix Ltd, please visit https://www.algodynamix.com/
About R42 Group
R42 Group is a venture capital and private investment company for accredited investors. R42 Group focuses on deep science investments and quantitative equity investments and undertakes thought leadership activities through the R42 Institute. To find out more about R42 Group, go to https://www.r42group.com/
About HighGuard Capital
HighGuard Capital is a private investment company for accredited investors. Its flagship fund is the award-winning Guardian Opportunity Fund. The Fund utilizes deep data machine learning to identify short-term price inflection points and inefficiencies in the S&P 500 and volatility market. It seeks to systematically capitalize on those signals using options and index ETFs. For further information and accredited investor inquiries please visit https://www.highguardcap.com/ or email firstname.lastname@example.org.
AlgoDynamix risk analytics provide hours or days advance warning of major directional market movements. Our products are used by investment banks and asset managers including CTAs, hedge funds, family offices and other managed funds. The company is backed by institutional investors including Amadeus Capital Partners and was recently nominated as one of the UK’s most disruptive technology companies.