Stockholm (HedgeNordic) – Artificial intelligence-driven currency fund CenturyOne has now joined the Nordic Hedge Index. The fund was launched on October 14 by Malmö-based Century Analytics, an alternative fund manager founded by Niklas Höjman, Hugo Langéen and Jimmy Carlsson.
CenturyOne applies machine learning algorithms to predict short-term movements and patterns in the foreign exchange (FX) market. The fund focuses on the G10 currency pairs, the most liquid currency pairs in the FX market. As Hans Nelfelt, the CEO of Century Analytics, previously explained, “all investment decisions in CenturyOne are performed by machine learning algorithms, which enable the fund to identify unique investment opportunities while continuously improving its ability over time.”
CenturyOne is mainly targeted towards institutional investors such as pension funds, family offices, insurance companies, corporate treasuries and high-net-worth individuals. The fund targets an annual return of 10 percent with expected annual volatility between eight to 12 percent. The ample liquidity and the vast amount of data points make the currency market suitable for machine learning systems, according to chief technology officer Jimmy Carlsson.
As one of the most efficient markets in the world, the foreign exchange market presents few alpha opportunities to investors. Yet, Carlsson reckons that “market psychology drive prices many times, creating inefficiencies that can be exploited systematically.” According to the CTO, “there are recurring price patterns that our models are quick to detect and exploit.”
Century Analytics was founded by Niklas Höjman, Hugo Langéen and Jimmy Carlsson, who were later joined by CEO Hans Nelfelt, among others. Nelfelt has an extensive background from the finance industry after having worked as the COO of Swedish investment bank Carnegie and the CEO of Carnegie’s Swedish fund management company.
Höjman, meanwhile, previously worked for Goldman Sachs in London before deciding to come back to Sweden to work on an FX-focused trading system with Langéen, a high-stake poker player who later started trading in the FX market. Carlsson is a serial entrepreneur with 15 years of experience developing AI-based applications for the military defense industry and machine learning system for FX trading.
Welcome to the Nordic Hedge Index!