The LI Data Intelligence Fund (DIF) combines Big Data analysis and artificial intelligence (A.I.) algorithms to form smart and automated investment decisions. The fund can hold long positions in highly liquid European equites and ETFs as well as long / short positions in highly liquid equity indices (e.g. DAX Future) for risk and exposure management. The investment objective of the LI Data Intelligence Fund is a positive return, which significantly exceeds the risk-adjusted yield of the DAX on a long-term average. At the same time, the aim is to not realize any negative annual returns.
Performance DIF vs. DAX / EuroStoxx 50
Key Advantages – LI Data Intelligence Fund
- A revolutionary pure play “Big Data powered A.I.” approach – in a simple European equity fund
- Highly liquid UCITS product (daily) – despite the long / short character
- Big Data & A.I. based long-only stock selection of highly liquid European equities
- Long / short positions in highly liquid equity indices (DAX future) for risk and exposure management
- Strong performance especially in market corrections
- Available to retail and institutional investors
The fund’s investment decisions are based on Big Data analysis of more than 45,000 securities in real time. The data on securities and financial markets is automatically collected, filtered, weighted and analysed in seven countries and in three languages (German, English and Chinese) through natural language processing. In this way, more than 2 million capital market-related news items are evaluated every day in real time.
The system assigns to each security a preliminary positive or negative signal based on the collected information. Before a final trading signal is generated, the A.I. algorithm compares calculated sentiments and intensities with historical sentiments and historical price movements and provides predictions. New decisions and its performance results are added to the database and therefore included for future trading signals going forward. The system is self-learning on an automated basis and the whole process from crawling the data to trading execution is fully automated.
The stock universe for the Big Data & A.I. based stock selection consists of the most liquid European stocks from DAX, M-DAX, TecDAX and EuroStoxx50 indices. Stocks are weighted with less than 50% weighting in the fund and have an average holding period of 4 weeks. More than 50% of the fund consist of a risk management component with long or short positions in highly liquid equity indices (like DAX future).
The combination of millions of opinions and messages in combination with the unique experience set in new technology leads to a competitive advantage compared to traditional investment forms. Our focused trading is non-frequent and comes with a tailored risk management including “Big Data triggers” and stop loss limits.
Fund Details – Retail
|Name||LI Data Intelligence Fund (P)|
|Investment style||Stocks, Large Cap|
|Minimum investment||0 EUR|
|Exposure||+100% to -50%|
|Up-front load||up to 5.25%|
|Launch||8th November 2018|
|Start Performance Measurement||1st March 2019|
|Advisor||Catana Capital GmbH|
|KVG||Ampega Investment GmbH|
|Custodian||Hauck & Aufhäuser Privatbankiers AG|
Frequently Asked Questions
What is artificial intelligence?
Artificial intelligence, or AI, deals with the automation of intelligent behaviour and algorithm-based decision making. Through recursive learning, the algorithm can improve itself independently in restricted and predefined applications. Put simply, we use AI to completely automate previously manual research processes and to create quantitative models based on these.
What is Big Data?
Big Data is the processing of large, unstructured data sets into structured patterns.
Why should I invest in an AI-controlled fund?
AI is able to recognise complex, non-linear relationships of data better than humans. The same applies to the calculation of probability chains. Through analysis and recursive development based on historical reports and price movements, AI can find and exploit mispricings in non-perfect markets. Due to the individual investment approach, diversification already begins via the input factor. This results in a very low correlation with other asset classes.
Why is the price structure so high?
Compared to other similar products, the price structure is less expensive or identical with a better performance.
What is long / short?
Long / short describes an investment strategy which invests in equities to reflect the growth of companies (“long”) on the one hand, and hedges the invested capital against falling markets (“short”) by “short selling” on the other. For the “long” strategy, Catana Capital invests primarily in large German and European equities (e.g. Daimler and Siemens), and for the “short” side, the LI Data Intelligence Fund hedges risk in certain market phases via the Dax Index Future (without leverage). This approach reduces the risk in certain phases or can even profit from falling prices.
Why long / short in rising markets?
After a 10-year bull market, there is a high probability that sooner or later there will be a downturn again. With the two strategies within the LI Data Intelligence Fund you profit from rising markets and hedge your position against falling markets. You could almost consider the strategy as an insurance against falling market prices.
Why not an ETF or the advantages of an actively managed fund?
ETFs track predefined indices. This means that the value of the passive investment fund benefits from strong market phases, but in weak phases the price falls accordingly. Actively managed funds are able to react quickly to market movements. In particular, the hedging component in the LI Data Intelligence Fund as an insurance against falling market prices characterizes the strategy.
What does exposure management mean?
Exposure management refers to controlling and minimizing risks within the LI Data Intelligence Fund. The fund aims to cut off around 80% of market correction phases based on the Big Data driven AI.
What is the high-water mark?
The high-water mark is the previous high of the fund. If the value of the fund falls below this mark, performance fees are only payable again once the previous high has been passed.
Where can the fund be purchased?
You can purchase the fund from your bank, online broker or asset manager by using the ISIN DE000A2H9A68.
Is the fund eligible for a savings plan?
If you are interested in a fund savings plan, please contact us directly.
In addition to the retail tranche, there is a tranche for institutional investors available as well.