Name: ArrayStream Technologies
Legal Name: ArrayStream Technologies Ltd
Location: London, UK
Social Media: 14 followers on LinkedIn
Industry: Global Mutual Funds Market
Size: $17.71T in 2018 (Source: Mordor Intelligence)
Future: $23.73T by 2024 (Source: Mordor Intelligence)
We live in times where active mutual funds are struggling to perform. But a startup called ArrayStream Technologies now offers fund providers a chance to improve chances of beating the index, by reenergizing active funds with AI.
What ArrayStream Technologies does is help asset management companies develop an AI-powered mutual fund using cloud computing.
This new fund, thus created, will exhibit all the positive features of index funds; with a lot of added benefits.
Using high-performance cloud computing, ArrayStream technologies sorts through market signals to identify the ones that have the potential to perform best.
They also “transform single signals, such as GDP and company new, into new composite signals,” as outlined by Zheng at the EF9 demo day. Creating new, composite signals instead of only focusing on single signals opens up hitherto hidden profit opportunities. The company also doesn’t focus on one signal alone. Instead, it tracks multiple signals and switches off from those which are losing power – adapting to market information.
Additionally, ArrayStream Technologies’ website highlights the Polymorphic Diversification method, which they employ to reduce transaction costs and aid in better management of ex-ante risks.
Origin and Founding Team
ArrayStream Technologies was founded by Yu Zheng and Ran Fan, both alumni of Imperial College London. While Zheng’s expertise lies in machine learning, option pricing and portfolio construction; Fan has experience in building real-time automated trading systems, distributed high-performance computing clusters, and big data analytics platforms. They started working together on ArrayStream Technologies in September 2017.
Performance and Trends
In March 2018, ArrayStream Technologies received $100k from Entrepreneur First.
Zheng also mentions that, around April 2018, they were in the process of creating a thematic fund for a potential customer. Based on ZoomInfo data, the startup clocked revenues of $2.8M in Q4 of 2019.
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