Imbue Capital

INFORMATION ASYMMETRY THROUGH ARTIFICIAL INTELLIGENCE

Consistently beating the market has always meant knowing more than anyone else. Only then can you can you spot patterns others can’t and act on them before others can. But today’s data explosion has made this virtually impossible, especially in commodity markets. There are no longer any quick wins or easy trades - as several recently closed hedge funds can testify.

Imbue Capital restores the power balance, bringing back to trading something that hasn’t been possible for a long time:
information asymmetry.

We’re a new type of AI-driven hedge fund that couldn’t have existed even 12 months ago.

Our powerful data engine harnesses technologies including big data, artificial intelligence and deep machine learning to pinpoint and analyse the information that matters. Then our team of mathematicians, traders and statisticians apply cutting-edge research and strategies, including the latest academic research coming out of the University of Melbourne, to make sure we consistently beat the market.

The result is that commodity trading is once again profitable. And, with artificial intelligence constantly modifying and improving our algorithms and strategies, it has the potential to become more profitable still.

HARNESSING THE POWER OF MACHINE LEARNING

“THE HUMAN MIND ISN’T A COMPUTER; IT CANNOT PROGRESS IN AN ORDERLY FASHION DOWN A LIST OF CANDIDATE MOVES AND RANK THEM BY A SCORE DOWN TO THE HUNDREDTH OF A PAWN THE WAY A CHESS MACHINE DOES. EVEN THE MOST DISCIPLINED HUMAN MIND WANDERS IN THE HEAT OF COMPETITION. THIS IS BOTH A WEAKNESS AND A STRENGTH OF HUMAN COGNITION.”

– GARY KASPAROV (CHESS GRANDMASTER)

HOW HEDGE FUNDS HAVE EVOLVED

1960
FUNDAMENTAL
The hedge fund first gains prominence in the 1960s when managers would rely on extensive and time-consuming research to assess the intrinsic value of companies and invest accordingly. Most are wiped out in the bear market of 1973/74 but some, including that run by Warren Buffett, continue to prosper.
1980
MACRO GLOBAL DISCRETIONARY
By the late 1980s, the hedge fund was back in vogue thanks to investors such as Julian Robertson and George Soros. Using a combination of research, intuition and tools such as derivatives, they’d place large one-way discretionary trades on an investment or market. In 1992, Soros famously used his hedge fund to place a $1 billion bet on the devaluation of the Pound Sterling.
1990
QUANTAMENTAL
In the 1990s and 2000s, the quantamental fund takes off. Led by Renaissance technologies, these analyse masses of data and then employ complex mathematical models to develop investment strategies. However, as the amount of data grows exponentially, these funds are forced to evolve.
2015
TRADITIONAL MACHINE LEARNING
Emerging in around 2015 and 2016, these combine big data with machine learning to analyse data and spot patterns. Analysts must still comb this research and develop strategies, meaning testing and refining strategies remains a time consuming process.
present
THE AI-DRIVEN FUND
In the past 12 months, a new type of fund has emerged. Using deep learning and deep reinforcement learning these don’t just sift through masses of data but can identify complex relationships within it, which simply aren’t visible using other techniques. Truly antifragile, these funds won’t simply withstand turbulent markets but benefit from them, as they learn and improve.

OUR FUNDS

AI Commodites Fund

We aim to beat the market through an information edge.

Our powerful data engine identifies and analyses patterns and inefficiencies affecting commodities prices that are only discernible through an analysis of big data. Then we take both long and short positions on a systematic and bias-free basis to capitalise on them.

Australian Water Fund

Water is becoming an increasingly scarce and valuable commodity.

We take data from thousands of data points, including NASA satellite imagery, BOM forecasts, changes to dam levels and more. Then we apply a deep learning algorithm to trade Australia’s short-term allocation market and invest in entitlement water rights.

Meet the Team

Our Team at Imbue Capital
Les Finemore
Chief Investment Officer
Ciaron McKinley
Chief Operating Officer
Bobby Koteski
Head of Algorithms
Claude Chen
Chief Software Engineer

COMMITTED TO RIGOROUS INNOVATION

Imbue Capital’s close ties with the University of Melbourne give us unique access to research, talent and ideas. This separates us from all our competitors, including other AI-driven hedge funds. Melbourne University is Australia’s highest ranked tertiary institution and many of our staff have studied at its Information Technology School. We also have close ties with NASA and the Bureau of Meteorology.

On the back of this commitment to innovation through rigour, we’ve taken the time to build the very best team possible where the brightest, most visionary and most inquisitive minds have the chance to truly reach their potential.

We also practice a flat structure, where the status quo is constantly challenged, curiosity is encouraged, honesty and transparency are prized and ideas are welcomed from anywhere.

Blog

HOW THE HEDGE FUND INDUSTRY IS BEING DISRUPTED

It’s estimated that in just the last two years that 90% of the world’s data has been created. ...

WHAT IS MACHINE LEARNING AND ARTIFICIAL INTELLIGENCE?

Machine learning and artificial intelligence isn’t exactly new. In fact, artificial intelligence was a term used in a 1956 research paper by John McCarthy, a math professor at Dartmouth. ...

EL NIÑO AND LA NIÑA: WHAT DOES IT MEAN FOR INVESTING IN THE AUSTRALIAN WATER MARKET?

You've probably heard of the terms El Niño and La Niña but what are the causes of these climate phenomenas and what do they have to do with global commodity markets? ...

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LES FINEMORE
CHIEF INVESTMENT OFFICER

CIARON MCKINLEY
CHIEF OPERATING OFFICER
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Level 38, 55 Collins St
Melbourne, VIC - 3000
Australia

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Suite 4000, 17 State St
New York, NY - 10004
USA

+1 212 739 0625