Bravemarket Capital Group
HEDGE FUND
Fundamentally Guided. Technology Driven.
Bravemarket Hedge Fund Platform has an established track record of managing the complexities of alternative investments. Our alternative strategies seek returns in both up and down markets. We deploy absolute return strategies, which target zero exposure to traditional markets, either at all times, or on average, and total return strategies, which maintain some exposure to traditional markets. Our investment philosophy is based on three core principles. A) We rely on sound economic theory and analysis to help us deliver long-term, repeatable results. B) We rely on a disciplined methodology of investment hypothesis, model, refine, test, and repeat. C) We rely on thoughtfully designed portfolio construction, meticulous risk management and measured trading. Using both qualitative and quantitative tools, we are conscientiously thorough in every detail of the investment process.
Our Risk Management team oversees all aspects of both financial and non-financial risks. Bravemarket employs a robust Enterprise Risk framework, which provides for a strong governance structure and ensures independence in making risk decisions. We believe it is important for Risk Management to interact closely with the Portfolio Management, Research, and Trading teams, working together in managing risk. Working in concert, we aim to ensure that portfolios are manageable through sudden and severely adverse stress events.
What differentiates Bravemarket Hedge Fund Platform is its cutting-edge work and deployment of Artificial Intelligence (“AI”). At the forefront of what our Hedge Fund platform does is to overlay and deploy Machine Learning to our investment process. Bravemarket defines Machine Learning as a collection of advanced models and algorithms for statistical prediction that can handle high dimensionality and nonlinearity. Our Machine Learning is a spinoff of our work in AI which is the science and engineering of making computers mimic human intelligence. As a subset of Machine Learning, we also overlay and deploy Deep Learning which is a collection of algorithms that include specific approaches used for building and training neural networks, which are algorithms designed to learn from a complex set of observations and inputs in order to identify patterns. Deep Learning models are predicated on the thesis that input data must pass through several levels of hierarchy before becoming output data.
Bravemarket Hedge Fund Platform also employs Big Data application which is an accumulation of both structured and unstructured data that is high in volume, velocity and variety driven by the advances in computing power, Decision Tree application which is a predictive algorithm that builds regression or classification models in the form of a tree structure, Random Forest application which uses a group of independent decision trees to make an optimal prediction, Natural Language Processing application which models human language useful to extract important signals in digital news, Signal-to-Noise Ratio application which is a measure of the true amount of predictability in a system, Out-of-Sample Prediction application which is commonly used to determine and evaluate the robustness of forecasting performance, and Overfitting tests which occurs when a model fits too closely to a limited set of data points.
Our software engineers develop innovative technologies and work hand-in-hand with our data engineers and business analysts to design, build, deploy and support the core of Bravemarket Proprietary Technology Architecture. Internal applications are built using a highly scalable micro-service architecture that is deployed via our cloud and server environments. From optimizing data retrieval to scaling out integrating complex systems with elegant solutions, our technology professionals work closely with our portfolio managers across our funds to give power and meaning to the millions of data points processed at Bravemarket. By developing these deep partnerships between our technology professionals and our portfolio managers, we maintain one of the highest standards of systems, service and solutions for our industry.
Global Macro
Our Global Macro team seeks to deliver positive absolute returns that are uncorrelated to traditional asset classes. We invest in a wide spectrum of assets across multiple geographies based on detailed evaluation of trends in economic fundamentals. We trade in over 150 individual markets across approximately 35 countries. We take informed positions across asset classes, encompassing currencies, fixed income, equities, and commodities on the basis of macroeconomic trends. We carefully monitor macroeconomic fundamentals and seek to be strategically positioned during market drawdowns.
Our investment process combines a deeply researched suite of quantitative signals with discretionary views informed by qualitative information. Macroeconomic indicators measure trends in growth, inflation, monetary policy, international trade and macro sentiment. Our Global Macro strategy also incorporates additional quantitative signals, including measures of value, price momentum, carry, and defensive. We are market neutral over the long term but can take directional views over the short term. We tend to buy assets for which macroeconomic fundamentals are improving, either on a relative or absolute basis, and short assets for which macroeconomic fundamentals are deteriorating. Macroeconomic trends are evaluated across multiple dimensions, utilizing both quantitative and discretionary inputs.
Long-Short Equity
Our Long-Short Equity team seeks to deliver equity-like returns with less risk. We aim to deliver positive returns by taking long and short positions in equity and equity-related instruments that are deemed to be relatively attractive or unattractive based on our investment models. We seek to generate capital appreciation by going long on stocks that are expected to perform relatively well and going short on stocks expected to perform relatively poorly. .
Our Long-Short Equity strategy is designed to have a net long exposure to the equity markets. The portfolio is constructed based on our proprietary global stock selection and asset allocation models, employing value, momentum, quality, and other proprietary factors to indicate which industries, sectors and companies are conditionally attractive or unattractive. We seek to generate attractive total returns through the spread between long and short equity positions and a net long exposure to equity markets. Our team seeks to provide higher risk-adjusted returns with lower volatility compared to global equity markets.
Arbitrage Opportunities
Our Arbitrage Opportunities team seeks long-term absolute positive returns. We aim to exploit mis-pricings in markets through a diversified investment approach across merger arbitrage, convertible arbitrage and relative value arbitrage. Our Arbitrage strategies look for two related assets that are trading at different prices, then buy the cheaper one and sell short the more expensive one. The difference between the prices is the expected profit of the trade.
Our Arbitrage Opportunities team seeks to invests in three primary arbitrage strategies: a) Merger Arbitrage, which is buying shares of the target company in a proposed merger, and hedging the exposure to the acquirer by shorting the stock of the acquiring company; b) Convertible Arbitrage, which is buying convertible securities and attempting to mitigate the risks associated with the investment by shorting the stock of the issuer; and c) Relative Value Arbitrage, which is taking advantage of perceived price discrepancies between highly correlated investments, including stocks, options, commodities, and currencies. The team seeks to balance its exposure equally among the three strategies while maintaining the ability to make tactical pivots based on each strategy's conditional attractiveness.
Event Driven
Our Event Driven team seeks to generate absolute return by investing in opportunities that arise from significant corporate events where there is typically some uncertainty about the outcome of the event in question, and where the outcome will be known relatively soon. Our Event Driven strategies seek to exploit pricing inflation and deflation that occur in response to specific corporate events including, but not limited to, mergers and acquisitions, reorganizations, restructuring, asset sales, spin-offs, bankruptcy, and other events creating inefficient stock pricing.
Our Event Driven team approaches this opportunity set with a strong emphasis on expected value, assessing the likelihood and returns of each outcome and focusing on situations where the team’s assessment of the expected value is greater than that implied by the market. We leverage on our strong expertise in fundamental modeling and analysis of corporate events and detecting patterns where similar assets begin to trade at different prices. The philosophy behind our Event Driven approach is to adopt a measured contrarian approach.
Multi Strategy
Our Multi Strategy team seeks attractive long-term risk-adjusted returns through strategic allocations to Bravemarket Hedge Funds. We have the discretion to deploy a variety of investment strategies to achieve positive returns regardless of overall market performance. We are not tied to a single investment strategy or objective. Our Multi Strategy approach has a low-risk tolerance and maintains a high priority on capital preservation.
We construct portfolios seeking to provide exposure to both active Multi Asset strategies and Absolute Return strategies. Our active Multi Asset Strategies seek to provide tactical and risk-managed allocations among major asset classes across global markets. These strategies are expected to have some correlation to traditional asset classes over the long-term. Our Absolute Return Strategies seek to capture returns from well-established investments styles, such as value and momentum.
Our hedge fund strategies have been seeking to generate Alpha and deliver returns in both up and down markets for over
Why Hedge Funds?
Multiple Sources of Returns
Hedge Funds provide investors diversified exposure to a range of alternative strategies and return sources.
Attractive Risk-Adjusted Returns
Hedge Funds provide an independent source of returns to a portfolio of stocks and bonds, aiming to maintain strong performance over the long term.
Potential to Perform in All Markets
Hedge Funds can tactically adjust strategy exposure and fund leverage. Hedge Funds can aim to be uncorrelated to the general market and have the potential to move in the same or opposite direction.
Portfolio Diversification
Hedge Funds invest across many investment strategies, asset classes, industries and geographic regions. When added to a traditional portfolio allocation, this differentiated approach may provide diversification benefits.
