Systematic Intelligent Alpha (excess return) or SiAlpha™ is a quantitative investment research system that analyzes real-time transactional financial data to effectively identify asymmetric (low risk-to-reward) investment opportunities in publicly traded shares, exchange-traded funds (ETFs), and cryptocurrencies. We call it the Science of Investing.™
We remove speculation and the guesswork to provide a scientific model to identify market opportunities, manage risk, and structure investment portfolios to consistently outperform the markets. Many of these opportunities arise as a result of supply and demand imbalances that usually persist for only a short period of time between 1 to 3 months. In essence, the SiAlpha is able to help quickly identify and monetize opportunities presenting high reward to the risk taken.
SiAlpha™ has a proven track-record delivering an average annual net return of over 24% over a 7-year period between 2010 to 2017 in a live proprietary trading environment. SiAlpha™ provides a safer, smarter way to invest in the exchange-traded funds (ETFs), stocks, start-ups, and cryptocurrencies.
SiAlpha™ was born out of our founders’ vision to help individual investors almost “never lose money” and earn above-market returns under all market conditions. His research into the best money managers introduced him to the relatively unknown mathematician named James Simons (pictured below) and the world of quantitative investing.
Simons used his “black box” quantitative models to launch an extraordinarily successful hedge fund firm few have heard of: Renaissance Technologies LLC The performance of his flagship fund since launch in 1989 has been nothing but extraordinary with an average annualized return of 35% (net of fees) and over a twenty year period. He accomplished this with performance fees of 20-40% and no negative period returns in any calendar year! (see chart below)
To better appreciate the significance of consistently positive investment returns and avoidance of large drawdowns (losses) during market “crashes” such as in years 2002 and 2008, a one-time investment of $150,000 in the Medallion fund in 1990 would have grown to a mind-boggling $300 million compared to just $732k if same amount was invested in the S&P500 index!
Although not easy, it IS absolutely possible to make more money with less risk. Just like Simons and several other exceptional investment managers such as Ray Dalio of Bridgewater Associates, Dan Loeb of Third Point, David Tepper of Appaloosa Management, and of course the legendary Warren Buffett of Berkshire Hathaway, have consistently made above-market returns with below market risk.
Research into the development, testing, and implementation of SiAlpha™ began in 2010 with live proprietary trading, testing and continuous development commencing over the next several years to form SiAlpha™ quantitative investment system as we know it today.