Stalwart Holdings Beats Hedge Funds Through Systematic Investing

Stalwart Holdings, a British fintech that developed an investment product that tracks the performance of the investments managed by its robo-advisory technology, has announced that it gained 2.63% in the month of May 2024, beating the global hedge fund benchmark Eurekahedge Hedge Fund Index, which was up by 1.37% in the same month.

The company has issued Performance Linked Bonds (PLB) that are traded on the Vienna Stock Exchange under the symbol GB00BQ683V10 and pay the investors based on the returns of its systematic investing solution.

A PLB is a unique investment opportunity that offers investors the potential for higher returns based on the performance of a specific underlying asset or index. This underlying doesn’t need to be static and can be actively managed, as in the case of Stalwart Holdings’ product.

Stalwart Holdings’ PLBs were designed to provide investors with a diversified portfolio and the potential for long-term growth while also focusing on capital preservation.

According to the company’s website, the product is available for any investor in the United Kingdom, Brazil and Switzerland and complies with the UK regulations for personal pension investments, or SIPPs. A SIPP is the British equivalent of the US 401(k).

The investment product created by Stalwart Holdings is particularly appealing to investors in the UK given that it complies with the regulations for SIPPs. This means that investors can use their SIPPs to invest in the bond, providing them with a tax-efficient way to save for retirement. The tax savings can be up to 45% of the principal invested, depending on the marginal tax rate of the investor.

Stalwart Holdings’ PLBs are up 9.22% year-to-date to the end of May-2024 and up by approximately 45% since its creation in August 2020. According to the company’s website, the product is 35% less risky than the FTSE-100 and 40% less risky than the SP-500, with the risk being measured as the standard deviation of the daily returns.

“We are very pleased with our performance so far,” said Fabio Dias, the CEO and managing partner of Stalwart Holdings. Dias is also the lead instructor for financial modeling at the University of Surrey, one of the top 10 in the United Kingdom for Business & Economics.

Dias brings a wealth of experience and expertise to Stalwart Holdings. With over 15 years of experience in the financial industry, he has a proven track record of success in managing and growing investment businesses. Prior to founding Stalwart Holdings, Dias held positions in technology and risk management at Credit Suisse and Lloyds Banking Group.

His dual role as managing partner and lead instructor for financial modeling at the University of Surrey is a testament to his outstanding reputation and capabilities in the financial industry.

Stalwart Holdings claims to use advanced artificial intelligence models to achieve returns that surpass the performance of several hedge funds. This groundbreaking approach has caught the attention of the financial industry and has sparked discussions about the potential of AI in the investment world.

The use of artificial intelligence in the financial sector is not a new concept, but Stalwart Holdings has taken it to the next level. By utilizing sophisticated algorithms and machine learning techniques, their AI models are able to analyze vast amounts of data and make informed investment decisions in real-time. This has resulted in returns that have outperformed traditional hedge funds, which mostly rely on human decision-making.

Dias stated, “We are thrilled with the success of our AI models in achieving returns that surpass those of hedge funds. This is a testament to the power of technology in the financial world and we are excited to continue exploring its potential.” The company’s use of AI has also caught the attention of investors, with many expressing interest in their approach and seeking to learn more about their strategies.

The use of artificial intelligence in the investment world has been met with some skepticism, but Stalwart Holdings’ success has proven its potential. With their innovative approach, the company has not only achieved impressive returns but has also opened up new possibilities for the future of investing. As they continue to push the boundaries of technology in the financial sector, Stalwart Holdings is poised to make a significant impact in the industry.

Busines Newswire