Fully systematic – From signal generation through risk management, we employ a completely integrated and systematized investment process
Broadly diversified – Across asset class, time frame and methodology
Innovative – Driven by intellectual curiosity and an acknowledgement that in order to thrive, we must adapt
There is branch of financial theory that presumes that market participants are rational, and prices fully reflect the value of all available information. At Lynx, we are convinced by the scientific body of research that conversely suggests that markets are not perfectly efficient and investment decisions are frequently influenced by various factors such as behavioral biases and divergent economic motivations. This forms the basis of Lynx’ objective and approach to investing: to persistently capture the opportunities that arise from market inefficiencies.
A systematic approach to investing is sometimes mistaken as opposite to a fundamental or discretionary style of active investing. However, both methods share a common aim: to generate positive risk-adjusted returns by identifying and investing in assets that are mispriced. The key difference is how information is collected, interpreted and utilized in the investment process.
Our models are designed to analyze and act on vast amounts of information without the behavioral biases that can cause individual investors to make irrational decisions. Further, the volume of data collected and systematically processed would be impossible for the human brain to manage. Finally, a systematic approach to risk management enables us to identify and control against losses that could otherwise occur without a comprehensive understanding of risk factors.
Robust and versatile
Our strategies employ proprietary trading models which utilize mathematical and statistical techniques and attempt to capitalize on opportunities across asset classes and time frames. Researchers work in teams to develop and systematize the concepts underlying these models, after which their conclusions are questioned and critiqued by an internal designated peer group. Only after a model has been rigorously tested and analyzed is it considered for approval by our investment committee.
Lynx believes that the way markets function can change over time. Consequently, we acknowledge that we need to adapt and innovate in order to thrive. Our team of researchers continuously reevaluate models in production and develop new models to maximize the risk adjusted return potential of our programs.