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.”


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.