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TPT’s team has developed Machine Learning (ML) investment algorithms for some of the largest and best performing asset managers in the world. We use this expertise to deliver superior outcomes for our investors and business partners.


STRATEGY FACTORY

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Traditional asset managers offer boilerplate products that do not fit the particular needs of sophisticated investors. These traditional products are overcrowded, expensive, rigid, and underperformers.

TPT’s assembly-line approach to strategy development allows us to customize investment algorithms for your specific needs. We create investment strategies that maximize the probability of achieving your investment goals, while meeting the constraints imposed by you in terms of risk, leverage, liquidity, turnover, drawdown, minimum Sharpe ratio, capacity, restricted securities, maximum exposures, etc. We specialize in statistical arbitrage, trend following, relative value, alpha capture, high frequency, and factor investing.

Our algorithms cover all stages of the investment process: data analysis, signal extraction, signal translation, bet sizing, portfolio construction, strategic/tactical asset allocation, risk management, and execution. Because you keep the assets, you have full transparency and control over your portfolio, while paying lower fees relative to traditional asset managers.

Boilerplate products are not designed to beat the market. Obtaining extraordinary outcomes requires unique solutions.

INSOURCING

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Asset management firms spend only a fraction of their resources in research, in many cases less than 10% of their budget. Most of their costs originate from tasks that are redundant to their clients, such as legal, compliance, back office, accounting, reporting, administration, marketing, etc. The implication is that most of the fees paid by investors are spent in duplicated services that they do not really need, and that add no value to the final clients. 

To stop overpaying, investors have two options: First, as discussed earlier, they can outsource the research function to a strategy factory, while keeping the assets. Second, they can build internally the research function, so that the entire business process is run in-house. In both cases, clients pay only for the services that add value.

TPT has a vast experience at building investment systems and processes for the leading asset managers. Investors can benefit from that experience, by working with us towards the internalization of investment mandates that they currently outsource. The advantages are multiple: customization, full transparency, a sharp reduction in management fees, and a significant improvement in performance.

An investor with a $1 billion mandate could replicate the process of a traditional asset manager at a 90% fee reduction.

SCIENTIFIC AUDIT

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Complacency breeds failure. As firms grow, they tend to settle for the status quo, and corporate politics thwarts healthy self-criticism. An objective and independent opinion is more likely to come from outside the firm.

TPT is uniquely qualified to assess the novelty, completeness and efficacy of an investment process, identify potential issues, and recommend improvements. Scientific audits are helpful to institutions and individuals interested in:

  • third-party independent review of internal investment processes.

  • conducting a due diligence review of an external investment or manager under their consideration (e.g., on behalf of a quantitative fund of funds).

  • methods to identify and prevent false investment strategies.

The ML revolution challenges all firms to review the validity of their legacy approaches.

PRIVATE EQUITY

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If selecting the ML fund that is right for your portfolio is hard, purchasing a stake in a true ML fund is orders of magnitude more difficult. Even a small valuation error of the IP held by the fund could lead to a substantial loss of revenue and principal invested. Only a firm with deep knowledge of ML and finance can assess the uniqueness of such investment.

TPT provides authoritative and objective advice to investors in private equity deals. We assess the value of stakes in cutting-edge quantitative asset managers and FinTech firms. Also, True Positive Technologies Holding LLC is a direct investor in modern quantitative asset managers, FinTech firms, and related IP.

Problems can’t be solved by applying the same kind of thinking that was used in creating them.
— Albert Einstein