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Bailey McCann, Opalesque New York for New Managers:

Stater AI, the investment firm behind the newly launched Stater AI Fund SP, is betting on the use of artificial intelligence in the investment process.

Cayman-based Stater AI Fund trades liquid S&P 500 equities and stock options targeting positive absolute return with low portfolio volatility. The fund runs a statistical arbitrage strategy using a proprietary portfolio optimizer.

Stater AI is led by Eric Stari, founder, and senior managing partner and CIO Ronnie Chowdhury, former head of the Metals Trading Desk at Deutsche Bank, where he supervised $8 billion of AUM. The strategy is based on Chowdhury's work managing his own money after leaving Deutsche Bank and is now opening to outside investment.

Chowdhury has created a trading program that identifies patterns around options pricing. Stater's proprietary portfolio optimizer uses machine learning to run portfolio simulations and create trading signals based on dislocations.

The portfolio is constructed of long and short positions on mega and large-cap stocks within the S&P500. Another 1-3% of the portfolio is invested in options to hedge the portfolio and support alpha generation. The strategy targets under 10% volatility and has an allocation window of 4-6 weeks. The systematic fund aims to be uncorrelated to broad market moves, but rather take advantage of pric......................

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