1741 Asset Management, the quant firm that emerged from the reorganisation late last year of the Wegelin Group, is forging its investment strategy by collaborating with the University of St. Gallen, the ETH Zurich and other leading academic institutions worldwide.
The firm’s academic collaboration has resulted in a series of white papers on Indexing, asset allocation and financial theory. The most convincing financial theories are assessed and then translated quantitative models.
This requires not only strong analytical skills, but also detailed knowledge of other areas such as accounting standards as well as extensive practical experience from investing in the global financial markets.
The managers then test and back test the reliability of the theory and the model on real world data. If the theory still holds up, the new strategies are typically seeded using proprietary capital, before an investment fund is finally launched.
A strategy has to prove that it can generate a superior risk-adjusted return in changing market environments before clients are invited to co-invest.
Focusing on the outcome of strategies will reduce risk and drawdowns, but also tends to cap the upside. “We try to take out the tail risk and to limit the downside risk,” Leveau said.
Funds are made available to Notenstein Private Bank and the Raiffeisen retail network in Switzerland. 1741 funds have daily liquidity, with no lock-in periods.
Dr. Pierin Vincenz, CEO of the Raiffeisen Group said 1741 would be supported to further strengthen its position as an internationally recognized, independent provider of cutting-edge, value-adding investment strategies.
1741 is also offering other fund services: representing foreign funds who want to market in Switzerland, outsourcing of fund administration and private labelling for external fund service providers who want to set up a fund of their own.