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.