FRM Seeds Investment Firm Focused On Data Mining

Jun 26 2013 | 6:54am ET

FRM, Man Group's fund of hedge funds investment unit, has made a seed investment in CommEq Asset Management, which is forming an institutional asset management business.

According to the firm, CommEq has developed an artificial intelligence-based prediction engine which aims to generate alpha from “previously under-explored, unstructured data sources and data streams.” The firm believes this information has the potential to influence the perception of corporations and hence the pricing of their securities.

CommEq was founded by Norwegian technology entrepreneur, Christofer Solheim. Together with Götz von Groll and Chris Shaw, Christofer has experience in analytics and software start-ups. As part of the relationship, FRM will provide infrastructure and operational support to Commeq, as well as risk management via its managed accounts platform.

“Following an investment of more than 150 man years in natural language processing technology and predictive systems, CommEq has developed what we view as an innovative systematic platform which we believe goes well beyond known approaches in the field,” said Patric de Gentile Williams, head of seeding at FRM. “We feel this strategy may be attractive for investors looking for highly liquid, systematic, relative value investment strategies.”

Solheim added, “Our alpha innovation and extensive research and development have enabled us to generate alpha throughout a wide range of market conditions for over five years. The strategic relationship with FRM will help us both scale our business and accelerate our investment products.”

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