Accessing the right type of data in conjunction with technology driven strategies assists in executing the right investment opportunities.

Using technology, speed and big data to gain an edge, specifically in the equities markets that can exploit market inefficiencies, are what many innovative investment firms are fostering.

AI (Artificial Intelligence) and machine learning are transforming our future today.

With cutting-edge technologies, innovative investment firms can detect valuable insights hidden among the heterogeneous information in the local and global economy and financial markets and make the most appropriate decisions to achieve maximized returns.

BlackPearl Capital Partners prides itself as being an innovative investment firm and we have been quietly working on an AI strategy, focused on becoming a technology funds management business that uses a quantitative, systematic approach to manage investors capital by using artificial intelligence to find new patterns that cannot be found by humans.

BlackPearl Capital Partners sees an opportunity to uncover hidden patterns in the financial markets that can be used to gain an additional edge in generating strong risk adjusted returns for equity investors.

BlackPearl Capital uses a multi strategy approach focused on short to medium term event driven, directional and statistical arbitrage strategies which means it is not reliant on any single strategy to perform at any given time. This mitigates the real risk that any investment strategy can stop working for a period of time.

Data Driven Algorithms

By continuously researching potential new sources of alpha including alternative data and news flow, BlackPearl Capital Partners aims to use specific data driven algorithms under one central fund structure that will allocate capital to the best performing algorithms while at the same time managing risk at the portfolio level. The aim is to continually rotate the portfolio’s capital on a real time basis to the best set of algorithms with the highest expected return at any given time. BlackPearl Capital seeks to constantly develop and deploy numerous uncorrelated algorithmic strategies whilst continuously innovating through research, testing and building new models.

BlackPearl Capital Partners sees an opportunity to uncover hidden patterns in the financial markets that can be used to gain an additional edge in generating strong risk adjusted returns for equity investors.

In essence, BlackPearl Capital Partners aims to use AI to continuously adapt trading algorithms to changing market conditions.

Investment Strategies

BlackPearl Capital’s investment strategies look for profitable opportunities from a diversified set of financial data, including but not limited to:

• Macro Economics: interest rates, monetary and fiscal policy, country trade data
• Company Information: fundamentals, share prices, dividends, management changes
• Alternative Data: Logistics, satellite image, social media
• Unstructured Data: financial reports and statements, central bank announcements

BlackPearl Capital Partners strong technology team enables it to collect and aggregate economics and financial information from various sources, including but not limited to financial data providers, news agencies, stock exchanges, social media as well as relevant Internet websites.

Some typical use cases of data and AI driven investment strategies are:

Strategy 1:

Collection of real time financial data as soon as it becomes available. For example, when an exchange-listed company announcement is released, that may be an annual financial report, management change or corporate action, information is retrieved immediately, using pre-trained sophisticated machine learning model to analyze the report and other related information including the company’s fundamental data, historical price movements, market consensus, etc.

This information is then used to make the most appropriate trading decision against the market event within minutes, while it usually takes hours or days for other financial market participants to analyze the information and market conditions before they can make a decision.

Strategy 2:

Collection of real time information from various financial news providers, new agencies, social media and Internet websites, then aggregate and analyze this information with advanced NLP (natural language processing) technologies, so that hidden key information can not only be identified from the vast amount of data, but also detect sentiments of the market participants. That insights allow a precise understanding of the market and the upcoming moving direction and hence execution of the most appropriate investment decision rapidly.

With the AI technologies both developed in-house and provided by third party providers, BlackPearl Capital Partners builds a powerful analytics framework that transforms heterogeneous financial data to valuable insights.

These insights are the key to making better investment decisions which ultimately lead to reducing risk and increasing returns.