Frankfurt am Main, August 10 2016
Automated Big Data analysis forms basis of investment decision
Focused investment strategy in DAX stocks and DAX futures without leverage allows market independent positioning
Strong diversification effect and reduces risks of volatile capital markets
By doing this, buy and sell order are generated for DAX 30 stocks and DAX 30 Futures in a purely quantitative process. „The strategy targets an annual double-digit return – independently of market movements and without employing leverage", Holger Knauer, CEO of Catana Capital says. The investment strategy was already successful in an audited backtest as well as with real money in 2016. In addition to professional investors, the target group are also private investors.
Via the Big Data analysis more than 25.000 securities are covered in real-time, including currencies and commodities. „The key question is: Who says what to which security? In a first step we collect more than 1.5 terabyte of information per month. This is more than 5 messages per second. In a second step, we evaluate the information“, Knauer continues. The system assigns to every security a preliminary positive or negative signal based on the collected information. Though, before a final trading signal is generated, the artificial intelligence analyses how a security has performed in the past after such a positive or negative signal. Only with a high success probability, a trading signal is generated. The new decision and its performance result are added to the database and therefore included for future trading signals going forward – the system is self-learning on an automated basis.
"The trading strategy is ground-breaking for the asset management industry. The interest of institutional and private investors for this innovative on Big Data and Artificial Intelligence-based approach is already very high", Knauer says. "Big Data-based trading strategies are superior to traditional investment forms due to the combination of millions of opinions and messages. We are basically turning epsilon, the ‘noise’ in the CAPM equation, into alpha. This innovative approach can achieve excellent results even in a challenging environment, can provide a high diversification effect and can help to minimize the risks and dependencies from volatile capital markets", Knauer explains. Cooperation partner for data collection is Big Data specialist Stockpulse from Bonn, Germany.
Fund name / sub-pool of companies assets: CATANA BIG DATA
Asset Manager: Catana Capital GmbH, Frankfurt am Main
Investment management company: Paladin Asset Management Investmentaktiengesellschaft mit veränderlichem Kapital und Teilgesellschaftsvermögen, Hannover
Administrator: Universal-Investment Gesellschaft mbH, Frankfurt am Main
Custodian: Joh. Berenberg, Gossler & Co. KG, Hamburg
Fund currrency: EUR
Unit type: Accumulating
Performance fee: 25% of the amount, which exceeds the share price of the fund at the end of an accounting period compared to the share price of the fund at the last 5 valuation dates plus 3% („high water mark“ plus „hurdle rate“), however, only up to 20% of the average value of the fund during the accounting period.
WKN / ISIN: A2AGM4 / DE000A2AGM42
Ongoing charges (estimate): 1,6 % p. a.
Minimum investment: None
Subscription charge: Up to 4 %
WKN / ISIN: A2AGM5 / DE000A2AGM59
Ongoing charges (estimate): 1,1 % p. a.
Minimum investment: 500.000 EUR
Subscription charge: None
Catana Capital GmbH is a financial institution, licensed according to section 32 German Banking Act and domiciled in Frankfurt, Germany. Catana Capital GmbH was founded in August 2015 and manages the globally first exclusively Big Data- and A.I.-based public alternative investment fund.
For more information, see www.catanacapital.de