NMRQL, a startup backed by Michael Jordaan, has launched a new fund which uses machine learning algorithms in its decision making.
Jordaan runs investment company Montegray Capital, while providing strategic oversight to various businesses – including NMRQL.
NMRQL, of which Jordaan is chairman, is an investment company with a focus on quantitative research and algorithmic trading.
The new NMRQL SCI Balanced Fund, administered by the Sanlam Collective Investments platform, is an FSB-approved collective investment scheme.
The fund aims to achieve long-term growth by investing in a portfolio of domestic and international assets.
The asset allocation and stock selection is managed using machine-learning algorithms.
“The machine-learning powered, computational investment process enables NMRQL to discover hidden patterns in underlying big data,” said the company.
It may comprise a combination of assets in liquid form, money market and interest-bearing instruments, bonds, corporate debt, equity securities, property securities, preference shares, and convertible equities.
The new fund complements the NMRQL Multistrategy Prescient QI hedge fund, which was launched in November 2015.
This hedge fund contains numerous investment strategies powered by machine-learning algorithms.
The minimum investment for the SCI Balanced fund is R100,000, while the Multistrategy Prescient QI hedge fund is R5 million.