G Squared Capital LLP applies a proven, systematic approach to fundamental equity investing.
Founded in 2011, the firm is at the vanguard of the AI revolution.*
Instead of a conventional investment team, G2 has 26 ‘Virtual Analysts’ (who pick stocks) and 45 ‘Virtual Traders’ (who help time entry/exit points).
We are not a traditional “quant”; our system is focused on fundamental bottom-up stock picking and our opponents are human portfolio managers.**
We source over 10,000 data points per company, including hundreds of environmental, social and governance factors to better manage risk and generate sustainable returns. G2 is a signatory of the UN Principles of Responsible Investment (UN PRI).
We invest only in liquid stocks globally. We don’t use: derivatives or balance sheet leverage, FX positions, illiquid side-pockets, high frequency trading, regression … oh, and we don’t mine twitter.
We have a clear edge*** and a 6 year+ track record of uncorrelated outperformance (with a special emphasis on tail risk mitigation).
Our client base includes institutions, pension funds, sovereign funds, specialized fund-of-funds and other sophisticated investors in the US, Europe, Asia and Australia.
* part of what Wired magazine calls the “Third Wave”.
**Despite media headlines, the vast majority of stock buy/sell decisions originate with humans (mostly mutual fund managers and retail investors). At most, quantitative firms manage $1 trillion against a global equity market capitalization of more than $60 trillion.
The so called “algo war” is confined to trade execution and/or market making – neither determine long-term price discovery.
In short, Mr Market is (still) human, with all the faults and foibles that implies.
***Our edge factors:
“Small Data” (not big);
Persistent patterns (not spurious correlations);
Target the “tails” of the distribution (don’t ignore them);
Factory concept (not a “magic algo”).