Investors are always on the look-out for more stable, high yield returns? Can big data deliver results? We talk to CEO of the Royal Vision Group, Matjaz Zadravec about how they are disrupting the investment industry with artificial intelligence.
Investors are always looking for low risk and high yield results. And the latest thinking is that big data, that buzzword influencing anything from tech to cities, to how we vote in elections, may be able to deliver those results.
JP Morgan Chase, writing for Forbes, claimed in October 2017 that: “Big data and machine learning have the potential to profoundly change the investment landscape. As the quantity and the access to data available have grown, many investors continue to evaluate how they can leverage data analysis to make more informed investment decisions. Investment managers who are willing to learn and to adopt new technologies will likely have an edge.”
They argue that using big data and machine learning, analysts will be able to process information and analysis faster and act on them instantaneously. Quite an attractive idea, and one with perhaps more steadier foundation than just the human analyst’s intuition. But human input is not over yet. Despite the advantages of big data, says JP Morgan Chase, machines can’t yet understand long-term investment trends or that spark of human ingenuity needed to make decisions.
Which is what makes Royal Vision Group’s ‘Two-Brain System’ – a core part of its Intelligent Fund – so fascinating. It’s a fusing of human capacity and advanced technology. Surely the best of both worlds? We spoke to Royal Vision Group’s CEO, Matjaz Zadravec, to find out more about the Intelligent Fund.
Tell us more about the Royal Vision Group and the Intelligent Fund
The company was incorporated in 2012, with a strategy to disrupt the incumbent financial industry with advanced technology supporting the business model.
Royal Vision Capital – which is a member of Royal Vision Group – manages a fund called the Royal Vision Intelligent Fund (RVIF). We see this method of the Fund as ‘going back to the roots’ of the development of markets and investment – as far back as the seventeenth century – when the focus was on creating value for the investor based on trust and collaboration.
But the RVIF Fund Manager uses the latest technological advancements for non-traditional investments, which employ sophisticated trading strategies with the support of artificial intelligence.
So, it’s a fusion of those values with the most advanced technology and approaches our society can offer. We believe that this combination will make the investment landscape more sustainable and profitable.
We definitely want to know more about the Intelligent Fund. What does it do that’s different?
The Intelligent Fund investment objective is to provide the qualified investor with a positive double-digit net return on rolling 12 months with less than 10% risk on the initial investment.
The complete business structure and technology of the Intelligent Fund were built on managing risk first and then maximising the overall return on capital. Our model was built over ten years by high-level industry experts in finance, mathematics and physics, and tested for over three on a live market with proprietary funds. And our model has been applied to the Intelligent Fund – it was developed in-house and is our intellectual property.
It is an alternative investment solution, which uses a unique and self-developed technology called the Two-Brain System.
The Two-Brain System is a combination of the human ‘know-how’ and advanced technology – a virtual trading artificial intelligence assistant (AIA). It creates a one-of-a-kind synergy.
So how does it work? AIA analyses the market and learns from it at high speed. It makes a suggestion, based on its smart analysis of data, for a potential trade with probability factors. Then the skills of the professional trader come into play – he or she uses the information, offers a secondary evaluation, and executes the trade.
We believe that our system will deliver stable, positive and above average returns and high-level risk management. Added features are intraday trading, where decisions are not affected by any bad overnight news, low monthly trading exposure – critical in this climate of potential economic and political turmoil – and no investment lock-up periods and monthly liquidity.
We’d like to know more about what the AIA does?
We noticed that the human trader has some limitations – slow, analytical thinking, limited research capacity, concentration, lack of emotional regulation and biases. This observation isn’t a criticism. It just describes the known limitations in a person’s make up. The AIA makes up for these shortcomings, providing systematic data at speed to help what people are good at – using their intuition and thinking ahead.
And, of course, we stand to gain from the growth in big data in general. Vast amounts of data are being generated and analysed, and processing times have sped up in recent years. It enables the AIA to calculate how the markets will behave and at what risk levels.
Why wouldn’t we want to use that data to increase the trustworthiness and stability of our decision making and financial investments?
Who are your clients?
The Intelligent Fund is offered to professional individual investors, family offices, and financial institutions. Our client focus is global.
What are your company values, and how do they affect how you work?
The Royal Vision Group sees itself as being free from old business structures and its hierarchies and culture. We are most definitely pro-innovation and disruption.
Our values influence how we recruit our staff and what we expect from them. Our business model and working culture are horizontal. We work with a unique mix of a small but flexible team of 15 professional minds with expertise in trading, data analysis, research and development, business development, finance and investor relations.
We advocate the highest standards of excellence & resilience. Our core value is to deliver the best possible results for our clients while adapting to any vicious market cycles.
We are innovative, creative, passionately curious – focusing on new innovative solutions using our vast creative potential.
We believe we have integrity and moral courage, never compromising principles to advance doubtful or unethical business agendas.
We consistently apply corporate transparency and client confidentiality, always maintaining highest levels of transparent business practices towards all clients, while maintaining and preserving all of their privacy and security needs.
We believe our values and service are unique. That’s why we will thrive in the current investment environment.
What do you see for the future of
Royal Vision Group?
We have a standard activity in research and development department, continually evolving the technology and business model to make the final corporate operations even leaner and meaner.
Other than following the targeted goals of bringing the investment objectives to existing investors, we are currently focusing on increasing the assets under management (AUM), to get noticed by more prominent financial institutions and family offices.