Quantitative investment boutique Othoz, in collaboration with Agathon Capital and Universal Investment, has launched a defensive mixed fund that makes investment decisions based on artificial intelligence.
Launched in early May, ART AI US Balanced invests in S&P 500 Universe companies and annuities. The aim of the fund is to achieve a positive return with reduced risk ratios compared to the stock market.
ART AI US Balanced is based on an active, quantitative investment strategy based on proprietary machine learning research results. The advantage over traditional statistical methods is that investment decisions can be made on the basis of far more comprehensive data analysis so that the continuous change in the capital market is actively involved.
In addition, complex, non-linear interactions can be recorded and taken into account. The data basis of the ML-based, conditioned capital market models consists of scientifically recognised fundamental data and technical indicators at individual stock level as well as other macroeconomic variables. Changes in the characteristics of these information carriers are continuously systematically evaluated and the portfolio allocation adjusted accordingly.
The models generate risk-adjusted long portfolios and flexibly manage the investment level of the fund between zero and 50 percent. The stock selection focuses on stocks from the S&P 500 Index. The corresponding remaining liquidity is invested in short-term government bonds.
Through this concept, stable returns with limited risk of loss are to be achieved even in low-interest phases.