Artificial Intelligence powered hedge fund, Castle Ridge Asset Management Limited (“Castle Ridge”), won the award for best Emerging Manager at the HFM US Quant Awards 2021 based on the net performance of Castle Ridge’s Equity Market Neutral strategy over 2020. The Market Neutral strategy also earned the Highly Commended title as runner-up in the Quant Manager category. The HFM US Quant Awards recognize those firms that outperformed their peers throughout the last year.
To achieve these results, Castle Ridge developed a proprietary self-evolving Artificial Intelligence system, named WALLACE, that continually learns and adapts to changing markets
he pandemic caused extreme market volatility, record velocity and vicious sector rotations. Some of the world’s biggest quant managers had trouble navigating it. By contrast, WALLACE delivered a smooth ride for our Market Neutral clients, generating positive returns even while the markets were crashing in February and March.”
Dr. Alex Bogdan, Chief Scientific Officer, added, “Traditional systematic strategies tend to be static, failing when market regimes change. Even popular machine learning approaches like Neural Networks and Deep Learning have trouble with the shifts. Instead, Castle Ridge developed a completely new approach to AI called Geno-Synthetic Algorithms (“GSA”). These GSAs allow WALLACE to rapidly adapt to the environment. WALLACE evolves through a survival-of-the-fittest mechanism, over tens-of-thousands of generations each day. Furthermore, WALLACE can explain every investment decision it makes, setting itself apart from black box AI.”
Castle Ridge is growing quickly, with over $100 million in assets under management. According to Michael Petruzella, CIO, “The investment strategy was specifically designed to manage over a billion dollars. We are now seeing an influx of institutional allocators looking to fill that capacity.”