TORONTO, June 17, 2024 — Castle Ridge Asset Management Limited, an Artificial Intelligence-driven hedge fund manager (“Castle Ridge”), has announced the launch of its AI Multi-Strategy (the “Strategy”).
The Strategy is powered by WALLACE, Castle Ridge’s proprietary AI platform. A purpose-built supercomputer, launched September 2023, enables WALLACE to optimize multi-strategy investment mandates. The petascale supercomputer can run quadrillions of theoretical floating-point operations per second and packs thousands of square feet of hardware footprint and datacentre level cooling requirements into a proprietary 7.5 by 5.5-foot fluorinert liquid-cooled system.
The supercomputer allows Castle Ridge to rapidly customize multi-strategies for institutional allocators. WALLACE uses the computing power to generate and combine numerous independent cross-asset return streams for better diversification and improved Sharpe ratios. The highest-octane version of the Strategy targets amplified returns with dynamic leverage, variable exposure, and risk controls.
Adrian de Valois-Franklin, Castle Ridge’s CEO, commented, “WALLACE has incredible potential. The leap from single strategies to multi-strategies is like solving a Rubik’s cube where every small square is itself another Rubik’s cube. The complexity explodes exponentially!”
Traditional multi-manager investment firms may hire hundreds of human managers in pods to generate multi-strategy diversification. These pod operating expenses are often passed-through to end clients, layering significant costs on top of management and incentive fees. Castle Ridge’s multi-manager-in-a-box strives to deliver similar diversification at a fraction of the cost.
WALLACE can replace teams of human portfolio managers and evolves through a survival-of-the-fittest mechanism. Overnight, WALLACE typically breeds tens of thousands of virtual portfolio managers, all competing relentlessly to maximize Alpha through natural selection.
The Castle Ridge team brings together extensive expertise in both AI and financial markets, with pedigree from some of the largest financial institutions. This domain expertise allowed Castle Ridge to develop a new approach to AI called Geno-Synthetic Algorithms (“GSA”). GSA solves the longstanding problem of standard evolutionary computing to parallelize optimization of time series data. GSA is also transparent, overcoming blackbox limitations of mainstream AI architectures such as GPTs, LLMs, Deep Learning and Neutral Networks. WALLACE uses GSA to optimize the Strategy in a hyperdimensional search space using various data types, including integer, Boolean, float, decimal, and complex (imaginary and real) numbers.
ABOUT CASTLE RIDGE ASSET MANAGEMENT
Castle Ridge Asset Management, with offices in Toronto and New York, is a hedge fund manager delivering quantitative investment strategies powered by its Artificial Intelligence system, named WALLACE. The proprietary WALLACE AI platform continuously learns and evolves by analysing vast quantities of financial data. Castle Ridge developed two novel approaches to AI, including Ranking Inference Engine and self-evolving Geno-Synthetic Algorithms, which allows WALLACE to uncover unique market patterns. Unlike static investment strategies that often fail when market conditions change, WALLACE adapts and thrives.
To learn more about Castle Ridge, visit: www.castleridgemgt.com
Media contact:
Christen Thomson, Senior Director, Citigate Dewe Rogerson
[email protected]
Not an advertisement, advice, recommendation or offer to buy, sell or invest. Opinions and forward-looking statements are not guarantees of future performance.
Read more: Bright AI Crosses 30 Million Users Worldwide, Applying AI for Language Learning