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The Lynx Constellation Is Brightening Up

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Stockholm (HedgeNordic) – Lynx Asset Management made headlines in late 2019 with the launch of its pure-play machine learning strategy, Constellation, as a standalone offering. Following a challenging year in 2021, Lynx Constellation delivered impressive returns of 18.4 percent in 2022 and an additional 10.5 percent in last year’s difficult environment for traditional trend-followers. As a testament to its performance, the machine learning program was honored with the Best CTA award at the 2023 Hedgeweek European Awards.

“We are proud to announce that the Lynx Constellation Program won the Best CTA award for 2023 at the Hedgeweek European Awards,” announced the team at Lynx Asset Management on LinkedIn. “A huge thank you to the allocators and service providers that voted for us.” The annual Hedgeweek European Awards recognize the best fund managers and service providers in the European hedge fund industry across a wide range of categories. Winners are determined through an online poll of the entire Hedgeweek user base. The winners were announced during a ceremony and networking event on February 8 in London.

“We are proud to announce that the Lynx Constellation Program won the Best CTA award for 2023 at the Hedgeweek European Awards.”

Lynx Asset Management introduced its first machine learning model in the Lynx Program in 2011 and implemented over a dozen more before the launch of Lynx Constellation in October 2019. “We hired our first machine learning expert in 2009 and today these advanced techniques have grown to be an important part of our model portfolio,” says the team at Lynx Asset Management.

Run by a team of four – Andreas Bernsel, Daniel Chapuis, Max Nyström Winsa and Mats Brodén (pictured), Lynx Constellation employs systematic models utilizing a range of machine-learning techniques to forecast market prices. The forecasting models are designed to identify and exploit imbalances in the most liquid futures markets. Some of these imbalances are based on investor tendencies, behavioral biases such as herding, and repeating patterns of price action influenced by external factors such as seasonality. With its ability to adapt and learn from new information, Lynx Constellation remains agile in responding to changing market dynamics.

Following a modest 0.6 percent increase in 2020, Lynx Constellation encountered challenges throughout 2021. In response, Lynx Asset Management opted to temporarily withdraw Lynx Constellation from the market for new investors to refine and enhance the strategy internally. Despite facing a decline of 19.5 percent in 2021, Lynx Constellation embarked on a solid recovery starting in 2022. The machine learning strategy advanced 18.4 percent in 2022 and a further 10.5 percent in 2023, despite it being a challenging year for most traditional trend-followers. Lynx Constellation also started 2024 on a positive note, showing an advance of 2.8 percent in January.

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Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

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