The Polish startup uses artificial intelligence to manage the assets of investors gathered as part of the Luxembourg alternative investment fund Omphalos Fund.
The company was founded a few years ago by Paweł Skrzypek, previously the chief architect of IT systems at Cyfrowy Polsat, and in 2017 he was joined by Dominik Libicki, former CEO of Cyfrowy Polsat for many years. In January 2019, both started investing their funds in financial instruments using the AI tool developed by their company. When they achieved a rate of return of 20% per annum in three years, they decided also to interest other investors in their solution.
Although an autonomous mechanism decides what to invest in, essential restrictions are built into it that minimize investment risk. For example, only 0.5% of all funds can be invested in one instrument, and only up to 30% of money from a given portfolio can go to one economic area. It also has a stop-loss mechanism that automatically closes positions that start to bring too much loss. In addition, the startup invests only in companies with a capitalization of over USD 5 billion, indices of the largest stock exchanges in the world, and commodities, currencies, and bonds of several of the most developed countries in the world – a total of 260 financial instruments, both short and long-term.
Currently, the company is working on creating a new investment fund, which is more powerfully based on AI intuition, resigning from human intervention, eliminating restrictions, and minimizing risks. It is worth it because the value of the asset management market with the use of AI is estimated at USD 2.61 billion and is growing dynamically. And the strength of their solution is that it makes slightly different decisions than the algorithms used when investing by traditional funds, with no worse results.
The startup does not currently see too many competitors in the global market. And its solution is already used by American companies such as Citadel Securities and PDT Partners. And although funds that have been using AI for 12 years have been doing better than other funds, none of the big players in the investment market in Poland is planning to use this technology for the time being.