We founded ANNOX based on the idea, that investments should be guided by the scientific method; a process that begins with inspired ideas or economic hypotheses which is followed by analysis based on quantitative data, where after models are expanded, tested and integrated into investment strategies.
ANNOX combines massive amounts of data, world-class computing power and financial expertise to do exactly this.
We trade across many strategies, using a variety of different models. We combine the disciplines of risk management, research and technology to create optimal trading and investment strategies within the regulatory framework available to us.
ANNOX trade our own account in major developed equity markets across the globe, while using our inhouse developed strategies to create excess performance. Read more about it here.
ANNOX investment policy is based on three fundamental pillars:
- The financial markets are not completely efficient, i.e. there exist market abnormalities which can be used to generate excess returns.
- Financial markets offer risk premiums, i.e. additional returns for investors taking additional risk rather than placing their assets in risk free assets.
- Financial returns experience heavy tail risk, i.e. investment portfolios should be constructed to limit exposure to the extreme events.
ANNOX invests using an umbrella approach by deploying a large array of investment strategies designed to target specific market abnormalities or risk premia within different asset classes. Market risk premia are typically based on known academic research, but may be discovered by the in-house researchers.
- We provide an easy exposure to the major asset classes, global diversification, and protection against tail risk through an all-in-one product.
- Dynamic diversification through changing market conditions, we rebalance our portfolio on a continuous basis while considering trading cost relative to expected gains.
- We control drawdowns using dynamic asset allocation.
- Technological advantage. We have a flexible, module-based investment system, which enables plug-and-play of new research.
- Collaboration with universities. We have a well-established research collaboration with two major universities.
ANNOX applies a broad range of mathematical tools including machine learning, statistical modeling, and mathematical optimization. Our models are effective at identifying and quantifying investment opportunities, uncovering repetitive patterns and dependencies, and executing trades using best practice
Capital is allocated using a systematic methodology that is purely driven by quantitative data, which removes human emotion from the daily decision making, making it eaiser to commit to a consistent strategy, ultimately resulting in higher profits.