The 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 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 – 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 – Institutional
|Name||Data Intelligence Fund (I)|
|Investment style||Stocks, Large Cap|
|Minimum investment||1,000,000 EUR|
|Exposure||+100% to -50%|
|Up-front load||up to 1.25%|
|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 recognize 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 markets that are not functioning perfectly. Due to the individual investment approach, diversification already begins via the input factor. This results in a very low correlation with other asset classes.
Are there interventions by the management?
Discretionary interventions by the management do not take place on principle.
How does the algorithm react to unpredictable events (e.g. elections)?
In phases of extreme uncertainty (e.g. before the referendum on Brexit or the US election), the system can be completely switched off under risk aspects based on a consensus decision of the Catana Capital Team and the risk positions held in the portfolio can be largely neutralized using derivatives.
Is the fund a hedge fund or another structured product?
No. Catana Capital is an asset management firm based in Frankfurt am Main (Germany) licensed in accordance with §32 KWG. Our Data Intelligence Fund is a German UCITS equity fund. As UCITS, the fund is regulated in the selection and weighting of our investments.
Which news sources are analyzed? Are they legitimate and professional?
Forum contributions, social media posts, blog posts, news articles and research reports are analyzed. This results in a mix of opinions from all market participants from investment banks and research houses to smaller retail investors.
What are current investors in the fund?
Typical investors are funds of funds, UCITS funds and the treasury department of a bank. Founders, employees and partners are also invested in the fund as well as regular private investors.
What are the assets under management?
The assets under management currently amount to approximately 14.5 million euros.
What external benchmarks are there?
As external benchmarks, we consider the DAX, Long / Short Equity Funds and Managed Futures Funds. Irrespective of the benchmarks, our priority is to achieve the specified target return.
What is the target return and target volatility of the fund?
The target return of the fund is 10% p.a. after costs with a target volatility of less than 8%, avoiding negative years. The correlation with the DAX and other peers should be kept as low as possible.
How often does a rebalancing of the investments take place?
Stock positions are traded every 3 weeks and index positions are held for 1 week on average.
Is there an ESG rating or are ESG criteria considered?
Our limited investment universe of DAX, MDAX, TecDAX and EuroStoxx stocks ensures strong social and governance values. (All three criteria are considered in the NLP Sentiment Analysis.) Morningstar certifies that the fund has an above-average ESG rating in relation to its peer group.