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Simplectica Long/Short Hedge Fund Tech Stack
- Simplectica is a long/short systematic fund based on proprietary mathematics in the area of Brownian motion.
- They use proprietary Simplectica Covariance Matrix math to produce a broad range of predictive features which are fed to a machine learning algorithm.
- This results in a battery of predictors for returns, volatility, and other aspects of the price-volume process, on a time horizon of 1 day to 1 month.
- They monetize their predictors through a long/short investing strategy oriented towards highly traded US equities.
- Some key metrics for their strategy include a net Sharpe of 3.4 and a 217% CAGR over a one-year period.
- Simpletica's founders have experience in data science, machine learning, fintech, and quantitative finance.
- They use basic tools such as Google spreadsheets and Apollo.io for LP sourcing and CRM.
- Simplectica has its own proprietary risk models which they believe outperform available risk models on the market, but investors are often ingrained on using established models like Barra.
- They have built their own data protocols (Velo) to handle large, real-time data sets which they estimate are more performant than traditional data science tools.
- Simplectica has invented machine learning approaches that, as far as literature tells us, do not exist.
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