This Is Why Everest Is the Right Strategy for You
The fund’s investment universe is composed of the world’s most liquid Futures (bonds, equity indices, FX, and commodities) and the most liquid developed equities:
- Futures: 100 most liquid global futures contracts
- Equities: the most liquid equity stocks globally according to absolute (per region) and relative (i.e. excluding a constant percentage of the less liquid securities) thresholds for market cap and ADV universe of roughly 1,500 stocks.
Its philosophy consists of using technology and data to find patterns in the dispersion between all the securities in a universe. This is achieved by simulating a large number of Agents (>100 million) using large combinations of signals, time frequencies and universes.
Each Agent is a Long-Short portfolio based on a different sub-universe (e.g. Agri-commo for futures or a statistical cluster for cash equities) based on a different signal (e.g. close price for Cash equity). The large number of Agents generates two challenges: to optimize a high-dimensional portfolio and distinguish signal from noise, using a proprietary genetic algorithm.
The strategy comprises of a mix of short-term, mid-term and long-term strategies (Agents) that can be categorized as trend following or mean reverting. The process is repeated annually to update Agents with the most recent data.
Relying on techniques borrowed from natural sciences for solving multi-dimensional problems, the proprietary genetic algorithm replicates an evolving system allowing our models to select the strongest and most robust alphas, making the overall strategy resilient. The proprietary optimization process allows for a selection of lowly-corelated agents/strategies, aiming at generating absolute return over the mid to long term.
Millions of agents are filtered and selected later via the proprietary Genetic algorithm. Optimization. This high number is possible given the high computational intensity of our process. A proprietary optimizer has been developed directly in CUDA in order to reduce the steps between software and hardware and parallelize the computation. Using traditional techniques, it would take a month to run one portfolio optimization, it takes minutes for our process.
Regarding complexity in absolute, it is very simple with the current version of the model being based on 4 programs:
- Futures cross-asset
- Cash equity US
- Cash equity Europe
- Cash Equity Japan
Each program is based on average on thousands of agents, each agent is a Long-Short portfolio based on a different sub-universe (e.g. Agri-commo for futures or a statistical cluster for cash equity) based on a different signal (e.g. close price for Cash equity). The final portfolio is composed by thousands of securities, cross-assets, long and short.
RAM Active Investments SA (“RAM AI”) is a research driven investment manager specializing in sustainable liquid and alternative investments. RAM AI was established in 2007 with the conviction that harnessing data, technology, and human experience is pivotal to deliver sustainable returns and creating innovative and active solutions to investors.
Philippe Huber is the Portfolio Manager and an Executive Director for RAM Active Investments SA. Philippe is an award-winning PhD in Econometrics and Statistics and holds MSc’s in both Physics and Econometrics and Statistics. He has several publications under his name in some of the best academic journals in Statistics. Philippe started his career in 2006 and joined RAM Active Investments in June 2016.
Tony Guida is the Portfolio Manager and an Executive Director for RAM Active Investments SA. Tony holds a BSc and a MSc degree in Econometry and Finance. Tony started his career in 2006 and joined RAM Active Investments in 2019. Tony is a published author in quantitative finance and a Lecturer in Machine Learning applied to financial markets.
“Our capacity of improving our strategies is causally linked to computing power.”
Hedge Fund Manager @ CARL Everest, LLC
Investing in our Everest hedge fund strategy is pretty simple: just create an account, add the strategy to your portfolio and on the next funding cycle you're in.
Set Up Your Account
Quickly and securely connect your CARL account to your bank and transfer investment funds.
Using the tools within the CARL app, determine which strategies at what allocations are right for your investment goals.
Fund Your Investment
Simply save your portfolio settings and on the next strategy funding cycle your investment will be live!
"I didn’t know investments like this existed before finding CARL, and I guess they didn’t for regular investors until now. It provides so many more options, I can now manage my own hedge fund portfolio, diversify my investments and I have the potential to earn a return regardless of market direction."
Combining flexibility and versatility, quant hedge funds are the perfect opportunity to cover all your bases. By exposing your portfolio to non-traditional asset classes besides traditional revenue areas like the stock market or real estate, you can gain lucrative benefits, especially in volatile markets. Whether you have years of experience as an investor or you're looking for new investment opportunities – CARL is your ticket to investment success.
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