Canadian wealth manager Canaccord Genuity Group has invested in Castle Ridge Asset Management, a provider of hedge fund investment strategies.
Financial terms of the transaction were not disclosed.
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Castle Ridge said that the investment will strengthen its distribution channel with Canaccord Genuity Wealth Management.
Castle Ridge leverages artificial intelligence (AI) technology to power its strategies.
Dubbed WALLACE, the firm’s AI platform is said to be able to forecast positive events such as acquisitions or negative movements such as market pull-backs.
Castle Ridge CEO Adrian de Valois-Franklin said: “Our proprietary WALLACE AI platform constantly adapts to ever changing financial markets.
“WALLACE is the culmination of 20 years of experience of what works, and more importantly, what does not work when trying to apply Machine Learning techniques to the markets.
“As a result, we developed a completely new branch of self-evolving Artificial Intelligence called Geno-Synthetic Algorithms.”
Castle Ridge’s fund suite includes US and global equities, market neutral, macro, fixed income, foreign exchange and multi-strategy vehicles.
The firm has presence in Toronto and New York.
Commenting on WALLACE, Castle Ridge chief scientific officer Alex Bogdan said: “What really sets the system apart is the ability to spot market behavioural patterns that are hidden to human managers and traditional static systematic strategies.”
