or Connect
Styleforum › Forums › Culture › Business, Careers & Education › Starting an investment business
New Posts  All Forums:Forum Nav:

Starting an investment business - Page 15

post #211 of 273

.

post #212 of 273
Thread Starter 
Sorry for the delay in getting back to some of you with pitchbooks -- but thanks for the interest, everyone! And remember, please forward our information along to any high-net-worth folks you know who might be interested in our fund. smile.gif

Anyway, things have been busy and exciting around here. I'm meeting with some folks with Morgan Stanley next week, I got our fund in the pipeline for approval in the UBS family (total longshot though), applied to several hedge fund seeders, I'm meeting with a high-net-worth ad exec next week and a guy who works at a private wealth management firm here in Los Angeles. I've sent out 46 pitchbooks in the last two weeks to individuals and institutions, including everyone from childhood friends (with rich family, natch), to prime brokerages who have agreed to make an effort at capital introduction for us, to the brother-in-law of one of the senior managers at Soros' Quantum Fund.

I've pretty much tapped out my network for the moment, so now it's onto seeder funds, fund of funds, and other official application processes.

Edit: oh, and we made 5% last week with the introduction of our revised system.
post #213 of 273
Thanks for the email, is there any chance you could post the annual returns for each year you've backtested and the correlation coefficient against market performance?
post #214 of 273
Thread Starter 
Quote:
Originally Posted by Sir Humphrey Appleby View Post

Thanks for the email, is there any chance you could post the annual returns for each year you've backtested and the correlation coefficient against market performance?

Might be a bit time consuming, but if we break it down annually for anyone, I'll post the results.

Fundraising update: We're getting along nicely with a fellow who works at an investment advisory here in Los Angeles. Seems very interested -- asking for lots more data, sending us e-mails on a Sunday, etc. Researched his firm and found that they have $400mil AUM, so if they like our strategy, they could certainly give us adequate funding to get off the ground without investing more than 1% of their AUM.
post #215 of 273
Quote:
Originally Posted by NameBack View Post

Think I just hit on a major improvement tonight! The way I had been building the ground truths that the machine learning algos were training on was biasing them towards a certain subset of strategies. This actually has some benefits, as for stocks who perform well using those strategies, the overall out-of-bag error is much lower for the strategies that are overrepresented in the ground truth.

oob error--does this mean you guys are using randomforest? why not boosted trees
post #216 of 273
Quote:
Originally Posted by NameBack View Post

Might be a bit time consuming, but if we break it down annually for anyone, I'll post the results.
Fundraising update: We're getting along nicely with a fellow who works at an investment advisory here in Los Angeles. Seems very interested -- asking for lots more data, sending us e-mails on a Sunday, etc. Researched his firm and found that they have $400mil AUM, so if they like our strategy, they could certainly give us adequate funding to get off the ground without investing more than 1% of their AUM.

What was the correlation coefficient?
post #217 of 273
Thread Starter 
Quote:
Originally Posted by ppllzz View Post

oob error--does this mean you guys are using randomforest? why not boosted trees

there are multiple machine learning strategies that list OOB
post #218 of 273
Thread Starter 
Quote:
Originally Posted by Sir Humphrey Appleby View Post

What was the correlation coefficient?

Our 3-year beta for the backtesting is 0.47
post #219 of 273
Thread Starter 
So we did 2.5% for the last two weeks in April (our first two weeks with the revised algorithm).

Pretty happy with that given what a choppy trade it's been this months.
post #220 of 273
Thread Starter 
Morgan Stanley has agreed to do capital introduction for us, on the condition that we use them as our prime brokerage if they get us a big client. Apparently today they're talking to a client of theirs who has a $340m account with them to see if he'll invest with us, and there will be more like this down the road. They're also interested in helping us license a restricted version of our system as a software package to online brokerages like Scottrade, etc, who would then sell the service to users.
post #221 of 273
congratulations!
post #222 of 273
Thread Starter 
Quote:
Originally Posted by indesertum View Post

congratulations!

Thanks! We're pretty excited about it. We of course are pursuing many other leads at the same time, including a mid-size prime brokerage (Lazard Capital Markets) that will also be trying to do cap intro for us to get us to work with them as our prime.

I might fly out to Vegas next week and crash the SALT hedge fund conference and see if I can do some good networking. Just gotta figure out how the hell I'll pay for it.
post #223 of 273
Nice work!
post #224 of 273
Thread Starter 
Oh and as of end of April we're up 12%, since inception, with the average hedge fund up 4.5% over the same period.
post #225 of 273
congratulations, man! i'm glad to see that your algo is doing well. best of luck in the future smile.gif
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: Business, Careers & Education
Styleforum › Forums › Culture › Business, Careers & Education › Starting an investment business