Written by Luna David
Several hedge funds in China had poor performance this year, causing severe loss of confidence in that market. In Europe, retail hedge fund assets are hitting multi-year lows due to poor performance and high fees. And, in the US, most mutual funds can’t fetch good returns either. The best returns seem to be out of reach for the average investor.
Stalwart Holdings, a British fintech company specialising in artificial intelligence (AI)-driven investment strategies, has developed a robo-advisor solution which tries to solve these problems. The company has just listed its perpetual notes for trading on the Vienna Stock Exchange. The price of these notes is determined as a function of the performance of the investment portfolio of the company.
The vertical fintech company uses artificial intelligence and full automation to drive its investment strategies. Its technique minimises operational costs and eliminates performance fees, resulting in above-average returns for investors. In 2023, Stalwart Holdings achieved a 12% return, outperforming many traditional hedge funds and AI-based strategies. In 2022, a year marked by a drop in the S&P500 of nearly 25% and disastrous performance for several hedge funds, Stalwart Holdings’ portfolio achieved good capital preservation and dropped by less than a quarter of the American blue chip index.
According to documents provided by the company, their investment portfolio comprises of stocks traded in the US and UK, with Futures and Options in the S&P500 and VIX used to hedge the risk of drawdowns. An internally developed Artificial Intelligence model chooses the best stocks to invest for capital appreciation and decides the timing and the volumes of the risk hedges to ensure wealth protection during market downturns.
“Our automated processes allow us to operate at a fraction of the cost of traditional hedge funds,” explained Fabio Dias, the CEO and founder of Stalwart Holdings, who also is the lead lecturer for financial modelling at the University of Surrey, in the United Kingdom. “This efficiency translates into better client returns and more affordable investment options.”
Stalwart Holdings will trade its perpetual notes, identified by the ISIN GB00BQ683V10, on the Vienna multilateral trading facility (MTF), a segment of the Vienna Stock Exchange known for its diverse financial instruments. Such an inclusion is expected to attract a broad spectrum of sophisticated investors who seek innovative and cost-efficient investment solutions. This strategic move marks a significant milestone for the company, enhancing its global market presence and providing investors with new opportunities for stable returns.
“We are thrilled to have our perpetual notes listed on the Vienna Stock Exchange,” shares Dias. “This inclusion underscores our commitment to providing high-quality investment products and enhances our visibility and credibility in the European market. We believe this will open up new growth and investor engagement avenues.“
The inclusion of the perpetual notes on the Vienna Stock Exchange is expected to provide several benefits to investors, including enhanced liquidity, transparency, and access to a regulated trading environment. The investor protection measures of a stock exchange in the European Union are recognised globally, making it an ideal platform for Stalwart Holdings’ financial products.
“Listing our perpetual notes on the Vienna Stock Exchange is a significant step toward achieving our goal to maximise returns for investors,” says Dr. Dias. Stalwart Holdings’ perpetual notes are designed to offer stable returns while minimising risks. Such a design is coupled with the company’s AI-driven models, enabling precise and timely investment decisions. The systematic strategy minimises the impact of market fluctuations and enhances the stability of returns.
This new milestone will attract diverse investors seeking innovative and cost-efficient investment solutions. Stalwart Holdings’ dedication to transparency and ethical investment practices further enhances its appeal to socially responsible investors.
The notes are not yet available for trading by retail investors in the United Kingdom and currently are on a pilot run where only certified high net worth investors and sophisticated investors can participate. Other investors, however, are welcome to obtain test credentials to the restricted area of Stalwart Holdings’ portal and follow daily updates of the company’s portfolio and investment strategy for educational purposes.
