The innovative LI Data Intelligence Fund German Equities (DIF-GE) uses big data analysis and artificial intelligence to select the best stocks from a broad German stock universe. The aim is to achieve an absolute higher return with our intelligent stock selection in long-term comparison to the German stock market.
The LI Data Intelligence Fund German Equities combines Big Data analyses with artificial intelligence (AI) to make intelligent and fully automated investment decisions. The fund is a long-only fund. It invests exclusively in liquid German equities. The investment objective is to use Big Data and AI to identify the best German stocks and thus achieve a higher return than the HDAX.
Key advantages – LI Data Intelligence Fund German Equities
- A revolutionary, Big Data driven AI approach implemented in a simple, German equity fund
- Short holding period of the securities of approximately 3-4 weeks, thus enabling a prompt reaction to ever faster changing stock markets
- Completely autonomous stock selection without discretionary action by the fund management
- Strong performance especially in growth phases by selecting the stocks with the highest Big Data Scores
- Fast switching between industries, sectors and equity factors
- Suitable for institutional and private investors
The fund’s investment decisions are based on Big Data analyses 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) by natural language processing. In this way, more than 2 million capital market-relevant news items are evaluated in real time every day.
The system assigns a preliminary positive or negative signal to each security based on the information collected. Before a final trading signal is generated, the AI algorithm compares calculated scores with historical scores and historical price movements and provides forecasts. New investment decisions and their performance results are entered into the database and thus taken into account for future trading signals. The system learns independently and the entire process from crawling the data to executing the trading signals is fully automated.
The stock universe for Big Data & AI based stock selection consists of liquid German stocks. As a rule, the fund will invest 100% in stocks. A rebalancing takes place every three weeks. This involves investing equally weighted in the 30 best German stocks according to our Big Data Scores. In addition, investments can be made in liquid stock index futures based on the German market as well as replicating ETFs to build up stock exposure.
There is no hedging of the exposure through short positions. Risk management is controlled via “big data triggers” and stop-loss limits and implemented as part of regular rebalancing.
|Name||LI Data Intelligence Fund German Equities|
|Custodian||Hauck & Aufhäuser|
|Funds-Category||Equity Funds (Germany)|
|Investment style||Stocks Germany Long-Only|
|Strategy||Big Data and A.I.|
|Instruments||Liquid German Stocks|
|Net-Exposure||+100% to 0%|
|Management fee||0.95% p.a.|
|Launch||23rd November 2020|
The LI Data Intelligence Fund German Equities is based on the Solactive Data Intelligence Germany Index NTR which you can track here.