Vestun Opens Hedge Fund To External Investors
Switzerland-based financial technology company Vestun has opened its hedge fund to outside investors. The firm had previously been managing its own capital.
Vestun's flagship strategy trades liquid US equities systematically. The strategy is designed to adapt its portfolio and risk exposure dynamically to the prevailing market conditions. In contrast to traditional systematic strategies, Vestun’s approach does not rely on statistical rules and historical events to generate signals. Instead, the strategy aggregate domain specific intelligence with datasets that individually perform in their own economics while remaining uncorrelated against each other.
Chayan Asli, Vestun founder and CEO, said: “Nowadays, everyone has access to the same financial datasets and machine learning models. If everyone uses the same smart systems with the same recipe for success, it will undermine the competitive advantage obtained by using computer-driven models to invest. In our belief, relying on signals generated from statistical rigid rules and backtesting history are not sustainable for delivering consistent long-term market outperformance”.
Vestun's chief scientist, Stephen Varey, has over twenty years experience in developing intelligent and risk engine systems for banks and hedge funds including HSBC, JP Morgan and UBS. Before joining Vestun, he worked at Cognizant as a lead AI architect.
“Most commercially available AI applications only focuses on Machine Learning, a subfield of AI which is best suited to recognizing patterns but not understanding them. As there is no understanding, Machine Learning do not explain its thinking so cannot be given autonomy in non-stationary situations. The intelligence of these applications can be boosted by modeling human expertise," Varey said.
Vestun keeps its performance confidential, but Asli said that the recent market turbulence was a good stress test of their model.
According to Vestun CEO “The crisis is a good means for revealing the relevancy of a successful investment strategy. Being able to keep consistency throughout reversing times is an important factor when considering the reliability of a given diversified investment process”.
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