About Neural-Q

Quantitative investment system with solid fundamentals

In today's data-driven era, the volume of data generated far exceeds the capacity of human analysis. Neural-Q is a transparent and fundamentally sound multi-algorithmic investment system. While it operates similarly to a traditional asset manager at its core, Neural-Q employs AI-driven, systematic, and unbiased analysts.

"Quantitative investment strategies should have a fundamental explanation to ensure lasting results. You can be right for the wrong reasons."

System Overview

Neural-Q is a system of AI analysts trained to comprehend the complex relationships between the macroeconomic environment and the asset price dynamics within its defined investment universe.

Fundamental Context is Key: Our AI Analysts use macroeconomic indicators to understand the current economic landscape, providing a solid foundation for their analysis. Each analyst has a unique configuration yet follows a consistent process in portfolio construction:

  1. Historical Context Identification: Our analysts identify past economic scenarios similar to the current one.
  2. Historical Returns Analysis: Analysts examine how asset prices responded in similar economic conditions and use this to forecast future asset returns.
  3. Portfolio Optimization: Leveraging the previously calculated return forecasts, the portfolio is optimized for resilience and adaptability across different market conditions.

Investment Universe

The investment universe can be understood as the set of all possible investments that can be made by Neural-Q.

Having a defined investment universe means that investors know and understand at all times the investments that are being made on their behalf.

The investment universes used by any of our strategies are highly liquid, which means investors can access their funds at any time.

Macroeconomic Indicators

More than 500+ macro economic variables with more than 60 years of historical information power our macroeconomic models.

These indicators are specifically designed to measure where the economies relevant to the strategy investment universe stand in their economic cycle.

By analyzing key indicators, we can identify the current economic phase. This insight is essential for our analysts, enabling them to adapt effectively to the prevailing macroeconomic environment.

Neural-Q System

Inspired by the multi-manager approach used in traditional asset management firms, the Neural-Q System functions as a multi-algorithmic manager, directing teams of AI analysts instead of human analysts. Key features of the system include:

  • Team Collaboration: Each AI analyst develops an independent view of the ideal portfolio for the current market environment. Organized into specialized teams, these analysts collaborate by sharing insights with one another, ultimately shaping the final optimized portfolio.
  • Performance-Based Culture: Each AI analyst's performance is individually tracked, with an individual profit and loss (PnL) statement. Analysts demonstrating strong, risk-adjusted returns are given increased influence in the final portfolio, ensuring that top performers are consistently recognized and rewarded.

Optimum Portfolio Calculation

Once the Neural-Q has consensuated the portfolio, our team of human experts review the results to ensure the following:

  1. Error Checking: Rigorous validation procedures are implemented to verify the integrity and accuracy of Neural-Q's recommended portfolio. This is designed to mitigate any operational risks, safeguarding our investors.
  2. Performance: We combine the precision and emotionless side of algorithms with human foresight to counterbalance both sides limitations. This gives us an edge over other investment strategies.

Human intervention in our portfolio determination process is rare, necessary only in scenarios with unprecedented events. Such events, having no historical precedent, are not in our database and thus are not factored into Neural-Q portfolio calculations by default.

Examples of these events include: The COVID-19 Pandemic, The Russian-Ukraine Conflict and The Israel-Palestine Conflict.