Our Investment Approach
Quantitative investment strategies with solid fundamentals
Leveraging the latest technologies, we develop highly liquid, alpha-generating, and low-correlation strategies. Our technology is transparent and fundamentally sound, not a black box. It has been meticulously engineered from scratch to outperform in one specific domain: analyzing the macroeconomic environment and basing investment decisions on this in-depth analysis.
"Quantitative investment strategies should have a fundamental explanation to ensure lasting results. You can be right for the wrong reasons."
Neural-Q Technology
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 pinpoint the current economic phase. This information is crucial for Neural-Q, which uses it to adapt to the current macroeconomic environment effectively.
Neural-Q
In today's data-driven era, the volume of data generated far exceeds the capacity of human analysis. Neural-Q has been
designed to analyze and learn complex relationships between data variables, identifying the most attractive investment opportunities,
dynamically adjusting the portfolio to the current macroeconomic environment. This is achived by:
- Macroeconomic Analysis: Neural-Q evaluates over 500 macroeconomic factors to determine the current economic cycle stage.
- Historical Returns Review: Neural-Q analyzes asset price behavior in similar past economic conditions.
- Predictive Modeling: By learning complex relationships between the economic data and asset price dynamics, Neural-Q estimates the returns of the assets until the next portfolio rebalance.
- Portfolio Optimization: Leveraging the previously calculated return forecasts, Neural-Q optimizes portfolios for resilience and adaptability in varying market conditions.
Optimum Portfolio Calculation
Once the Neural-Q has calculated the portfolio, our team of experts review the results to ensure the following:
- 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.
- 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.