Quant Fund Launches Strategy Utilizing AI, Machine Learning

Systematic hedge fund Versor Investments has launched a market-neutral strategy that utilizes machine learning and AI to trade single-name stocks and equity futures.

The strategy, Versor Equity Prism, was incubated with partner capital in January 2022 and is now being offered to outside investors.

The New York-based firm, which has more than $1.8 billion in assets, runs both hedge fund and risk premia strategies including equity index futures, merger arbitrage and trend-following vehicles, using a scientific, research-driven framework.

“Versor has always been committed to identifying, researching, and implementing novel ideas and technologies,” said Deepak Gurnani, founder and managing partner. “As we expand our use of alternative data, machine learning, and artificial intelligence, introducing Equity Prism is a natural evolution to our business.”

The firm, which was co-launched in 2014 by founding partners Gurnani and Ludger Hentschel, is also in the process of incubating a new macro fund with partner capital.

The systematic Versor Macro Sonar strategy invests in futures and forwards across equity indices, commodities, fixed income, and currencies. It utilizes both directional and non-directional signals to best capitalize on the existing macroeconomic environment.