Our Edge
Technology + Human Foresight
Artificial Intelligence (AI) and Machine Learning models excel in precise and emotionless computations based on historical data,
but their calculations can falter when confronted with unforeseen events. On the other hand, humans are foward-looking and have the potential
to foresee out of sample events, yet suffer from biases and emotions, introducing further complexity into the investment process.
At Alpha Rho Technologies, we combine the precision and emotionless side of algorithms with human foresight to counterbalance both sides limitations.
Resulting in systematic, non-biased and robust investment strategies.
Generating Alpha + Rho
Our reduced size and non-traditional learning path allows us to think outside the box and develop innovative solutions to complex problems, as well as staying non-consensus. Resulting in de-correlated, alpha generating strategies.
Independent Financial Firm
We operate independently of any specific financial institution or product, enabling us to offer impartial, non-consesnsus and unbiased solutions that solely focus on the client's best interests.
Co-investors
We invest with vocation, professionalism, and full dedication, the savings of our clients and ours in our strategies. This approach guarantees that our interests are fully aligned with those of our clients, ensuring a shared commitment to success.
Combining Active with Passive Investing
Historically, passive investment strategies have outperformed 95% of active investment managers.
We leverage the performance of passive investments at the
Tactical Asset Allocation level,
simultaneously capitalizing on the precision of our technology at the
Strategic Asset Allocation level.
Historically, this approach has consistently resulted in our investment strategies outperforming their respective benchmarks,
we therefore anticipate this pattern of outperformance to persist into the future.
Data-Driven Progress
Neural-Q's performance improves with increased data input, and as time progresses, we obtain more
data, resulting in enhanced performance over time.
Neural-Q currently draws on up to 63 years of historical data for each decision.
Rigorous Risk Management
Risk management is a critical component in our operations
- Precise risk calculations achieved by combining human foresight with data-driven algorithms
- Operating risk mitigated through human review of final output before execution.
- Liquidity risk limited through investment in highly liquid assets such as major sport currencies, major global index futures, ETFs, and liquid mutual funds.
- Counterparty risk mitigated by trading exchange-traded contracts with a central counterparty agent managing both parties margins.
Capitalizing On Secular Trends
Our strategies are poised to benefit from secular trends.
- Passive investment alpha decay: The popularity of passive strategies, combined with their lack of fundamental reasoning, may lead to their underperformance, potentially boosting our ability to generate alpha.
- Higher data generation: The rise in connected devices and the adoption of central bank digital currencies (CBDCs) will enable detailed transaction analysis. This will improve macro data granularity and boost the precision of our macro models.
- Advancements in processing power: This will allow for our models to learn faster, become more efficient and increase their accuracy as more complex relationships can be learned from data variables.