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Alternative Market Briefing

Machine learning behind Aussie hedge fund's solid outperformance

Monday, January 29, 2018

Komfie Manalo, Opalesque Asia:

Goldsky Asset Management, an Australia-based hedge fund specializing in quantmental and behavioral science focused global equity investing, is reporting a perfect year in 2017 with positive gains every month. Goldsky's Global Access Fund capped the year with 24.22% returns, outperforming its benchmarks as the MSCI World Index rose 14.75% in 2017 and the S&P 500 jumped 21.78%.

The solid performance last year extended the hedge fund's winning months to 14 consecutive months of consistent positive gains. The fund is also a constant outperformer with 14.67% and 23.76% returns in 2015 and 2016, leaving its benchmarks trailing during the periods. The MSCI World gained 6.14% in 2015 and 8.36% in 2016, while the S&5 500 reported gains of 4.24% and 11.19% in those years.

Goldsky founder and President Ken Grace attributed the fund's reliable results through their efficient use of machine learning when analyzing news. Goldsky's management principle is grounded on the belief that superior long-term results can be achieved by systematically exploiting information that is not obvious.

He stated, "Many features of news-based information make it especially appealing. Real-time news, though less structured than conventional fundamental valuation measures, usually encodes the first clues of major changes affecting a company. You could, for example, use news fragments to build statistical foreca......................

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