Ai For Alpha, a pioneering fintech specialized in AI investment strategies, announced the launch of its “CTA Flows Oracle” technology.
The “CTA Flows Oracle” predicts flows of Managed Futures funds across all major asset classes. This innovative approach leverages Ai For Alpha’s unique technology for replicating hedge fund strategies.
Beatrice Guez, CEO of Ai For Alpha, detailed the innovation: “Two years ago, Ai For Alpha released its AI-powered CTA replication portfolios that have consistently replicated the returns of major CTA managers. The strategy, now used by pensions and banks, has proven to be exceptionally efficient. Building on this, it was a natural progression for our team to leverage our deep understanding of CTA positioning to create this new solution, enabling quantification of CTA market positions in equities, bonds, commodities, and currencies.”
Thomas Jacquot, Head of Business Development, added, “Our CTA Flows Oracle is particularly valuable as it enables our clients to understand the unique dynamics and asymmetries in CTA market positioning. This insight helps our clients better comprehend market imbalances and integrate these insights into their strategic investment decisions.”
To illustrate the CTAs Flows Oracle effectiveness, Thomas Jacquot discusses its application to the US large-cap equity market: “On April 26, 2024, if the equity market rises by two standard deviations, the CTA-induced inflows into US equities are projected at $2.5 billion. Conversely, a comparable downturn could trigger outflows of approximately $36 billion. This disparity in flow dynamics underscores the insights provided by our technology helping our partners to understand risk asymmetries when designing their allocations.”
|
Market |
Horizon |
-2 Stdev |
-1 Stdev |
No change |
+ 1 Stdev |
+ 2 Stdev |
|
US Equities |
1 month |
-36.2 Bn |
-23.8 Bn |
0.5 Bn |
2.0 Bn |
2.5 Bn |
|
Flows in Bln USD, source: Ai For Alpha |
||||||
Guez summarized: “The ‘CTA Flows Oracle technology provides our partners with another tool to manage market complexities with precision. It excels at assessing potential movements in asset classes influenced by CTA strategies, granting our clients a significant edge in identifying key trends and market turnarounds.”
About Ai For Alpha: Ai For Alpha is a leading provider of generative AI and AI-powered investment models to large financial institutions in Europe, the Americas, and Asia. The company has received numerous awards for its achievements in AI applied to finance, including the EIT’s European Digital Label for Innovation and the Women TechEU 2023 award. Ai For Alpha’s publications rank in the top 1% of most-read articles on SSRN, the world’s.
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