Globallytics Fund No. 1

Artificial intelligence in combination with data mining and text mining ensures significantly more accurate forecasts on the capital markets and opens up higher return opportunities with significantly reduced risk at the same time.

The intelligent solution for your portfolio!

„One can not achieve above-average returns, if one does not act differently than the majority.“
Sir John Templeton

Artificial Intelligence

AI helps to prepare and analyze the data volumes of big data initiatives. It learns and develops models based on the data and thus reacts to new events. In this way, the AI-system constantly improves and adapts its behavior to changing circumstances.

Data Mining

Data Mining deals with the possibility of uncovering hidden patterns and structures in databases. This is done by systematically applying statistical methods and aims to identify new findings, cross-connections and trends.

Text Mining

Text mining is a method to get information out of unstructured texts. With the help of linguistic, statistical and mathematical methods, text mining can find specific patterns and structures and extract information.

The Philosophy

We believe that technical and fundamental analysis must be supplemented in the future by the building block of artificial intelligence.

Artificial intelligence, machine learning, data mining and text mining provide significantly more accurate forecasts for the capital markets and open up higher return opportunities with significantly reduced risk at the same time.

After more than 15 years of research, we have succeeded in using this technology successfully for your assets.

The philosophy of our implementation:
Long Only – Cash / Equity and of course no leverage and no use of derivative instruments. Purely data-driven strategies based on scientifically sound methods.

The goal of „Globallytics Fund No. 1“

The goal of the investment policy of Globallytics Fund No. 1 is to achieve an above-average increase in value with lower fluctuations. The major indices such as the MSCI, DAX, Euro Stoxx 50, Dow Jones and S&P 500 serve as benchmarks.

The fund’s strategy is based on artificial intelligence and a fully digital selection of a global investment universe. In doing so, companies that achieve above-average performance are specifically filtered out.

The scientific model of Dr. Sven Schmeier and Valentin Häußer contains various factors and key figures that identify the short-term positive performance of companies. As a part of our risk management, the selected positions are only held for a short amount of time in order to avoid long-term negative market trends that are difficult to predict.

The concept

Challenge: Continuous adaptation of the model to the volatile capital market.

In contrast to other funds, Globallytics is managed very actively. Each year, up to 2,000 purchases and sales of selected securities take place. In addition, the fund is not restricted to sectors or countries, but invests worldwide in attractive stocks.

What is so unique about this concept is, that neither fundamental nor chart technical aspects play a role in the selection of the fund. It is the first fund in the world to automatically issue buy and sell recommendations for a portfolio of over 600 equities via the analysis of corporate news from a wide range of providers. The intensive analysis and further development is permanently accompanied. With the application of these scientific and market-optimized methods, the complete exploitation of market potentials is achieved.

How it works

1. news

Extract data from selected message portals

5. implementation

Buy or sell recommendation based on analysis results

2. data collection

Collection and storage of data

4. recommendation

Buy or sell recommendation based on analysis results

3. data / text mining

Analysis, recognition of cross-connections and trends, recognition of latent semantics, machine learning and creation of data models

How it works

1. news

Extract data from selected message portals
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2. data collection

Collection and storage of data
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3. data / text mining

Analysis, recognition of cross-connections and trends, recognition of latent semantics, machine learning and creation of data models
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4. recommendation

Buy or sell recommendation based on analysis results
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5. implementation

Execution of purchase or sale recommendation

In practice

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Example of a company report

A lot of news this morning related to automobiles and mobility. Uber revealed that it intends to go public at a valuation that’s considerably less than what many analysts had expected, but automaker Ford Motor issued a financial report that showed how the company has stepped on the gas to start 2019.

Technical processing and analysis

…but automaker Ford Motor issued a financial report that showed how the company has stepped on the gas to start 2019.

Result

Purchase of Ford shares

Holding period < 1 week

Performance 5.35%

The Team

Christian Sammet

Christian Sammet

Initiator

Capital markets, fund management, portfolio management and trading

Profile on wealthgate.de

Valentin Häußer

Valentin Häußer

fund advisor

Responsible for analysis and   head of development

Profile on wealthgate.de

Elio Ballerini

Elio Ballerini

Sales

Sales, Project Coordination and consultation

Profile on wealthgate.de

Dr. Sven Schmeier

Dr. Sven Schmeier

fund advisor

Head of Portfolio Management and Chief Engineer of the German Research Center for Artificial Intelligence

Profile on wealthgate.de

Daniel Gruner

Daniel Gruner

Software Engineer

Further development and IT consulting

Profile on wealthgate.de

Years of experience

Years of development

Transactions per year

The Path

January 2004

The patent

Method for automatically classifying a text by a computer system (Number 10210553,German Patent Office)

The idea

Evaluation of different procedures for the prognosis of share price developments

The challenge

Continuous adaptation of the model to the volatile capital market

Development

Many years of further development and well-founded tests based on existing capital market data

Goal: August 2019

Application of a fund „Globallytics Fund No. 1“

Test

Execution of successful tests, e.g. Machine Learning System

Test

Execution of successful tests, e.g. Machine Learning System

Goal: August 2019

Application of a fund „Globallytics Fund No. 1“

Benefit from Artificial Intelligence

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Market enviroment

Sample portfolio

The performance shown is in part a simulated performance based on past performance. The performance since January 2019 corresponds to results due to real-time trading in a sample portfolio. Future results may be higher or lower. Commissions and costs are not taken into account when calculating the performance. The investment opportunities are offset by corresponding risks; past investment results are no guarantee of future performance. The sole binding basis for the acquisition of the Fund is the relevant key investor information and the Sales Prospects.

Development since start of fund

Future results may be both higher and lower. Commissions and costs are not taken into account when the value development is calculated. The investment opportunities are offset by corresponding risks; past investment results are no guarantee of future performance. The sole binding basis for the acquisition of the Fund is the relevant key investor information and the Sales Prospectus. Period of development presented: Fund launch on 01.08.2019 – 17:30 – 11.12.2019

Future results may be both higher and lower. Commissions and costs are not taken into account when the value development is calculated. The investment opportunities are offset by corresponding risks; past investment results are no guarantee of future performance. The sole binding basis for the acquisition of the Fund is the relevant key investor information and the Sales Prospectus. Period of development presented: Fund launch on 01.08.2019 – 17:30 – 11.12.2019

Opportunities and risks

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  • Opportunities for price increases through investment in shares.
  • The chance of an AI-based solution lies in the detection of the smallest signs of price changes, which are statistically confirmed by machine learning.
  • Risk limitation through short-term holding period of the individual securities, little to no trades in negative macroeconomic market conditions.
  • Objective assessment and evaluation through tested, scientific methodology.
  • Great advantages over classical value assurance systems, as these have lost a large part of their functionality due to high volatility due to political influences.
  • Triple protection by combining various strategies: Machine Learning, Up-To-Date Evaluations and the experience of Wealthgate specialists.
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  • Fluctuations in the capital markets can have a negative impact on the value of the fund price.
  • Individual companies can deteriorate their solvency even in the very short term, which can lead to price declines or defaults.
  • Statistical models are also subject to fluctuations, so that price losses can lead to declines in the unit price of the fund.
  • Technical risks:
    • Server has a failure at the time of final processing and purchases cannot be executed.
    • The news portal has technical problems and we receive only part or no news.
    • Failure of the mail server and the purchases come too late to the broker.

Key figures

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Contact

Christian Sammet

CEO of Wealthgate GmbH

Address

Lautenschlagerstraße 23
70173 Stuttgart

Contact data

Fon: 0711.540902920
Mobil: 0176.45666289
E-Mail: cs@wealthgate.de
Web: www.wealthgate.de