Systematic hedge fund

Systematic hedge fund

November 16, 2017
Chart of the correlations

Sphera Systematic (Systematic) is an affiliate of Sphera Funds Management, the largest Israeli hedge fund management group, with over $800m AUM. Systematic was conceived by SFM partners with the goal of building systematic hedge funds by combining the knowhow of SFM and Buky Carmeli, a long time industry veteran, as well as by capitalizing on the tremendous amount of technical talent in the Israeli tech space.

Investment decisions in the capital markets are based on a wide array of methodologies, technologies and strategies. One way of bifurcating those is by differentiating human made decisions from systematic decisions that are made based on rules without human intervention, or discretionary based investments vs. systematic investments. At this day and age, when technology is an essential part of our lives, systematic based investments have their share of the daily volume of the global capital markets, most widely referred to as systematic trading, or computer generated trading activity that is free from human intervention.

Under the definition of systematic trading, one could find other terms such as algo trading, essentially computerized trading based on predetermined activity, and quantitative trading, which is computerized investment decisions based on quantitative analysis of key parameters.

In order to build a systematic hedge fund, two main obstacles need to be tackled. The first is finding the right systematic technologies that have a proven track record of results in trading significant volumes and that are versatile enough to adapt to markets volatility. Second obstacle would be to find the way to operate a number of strategies in concert so as to ensure stable returns, low volatility and a high sharp ratio, whilst maintaining proper risk controls. The affiliation with SFM will allow sphera systematic the knowhow and experience of an industry veteran player as well as the infrastructure to support its growth.

CEO of Sphera Systematic

Head of M.O.D. cyber and technology defense authority, published several academic articles in cyber arena. | Ex-Officer at one of IDF's elite technological units. | Entrepreneur and founder with over 30 years of experience in leading large C5I research and development teams. | Vast experience in research, development, implementation and practical execution of mathematical algorithms for U.S. stock market trading. | Engineer, Bachelor of Science in Electronics and Computing (B.Sc.) from Ben-Gurion University; Wide knowledge and research experience in parallel and super computing engineering.

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