AI Hedge Awards 2017

8 Acquisition International - Hedge Fund Awards 2017 firm works to provide an exemplary experience throughout the investment process. “At Tmesis, we are always willing to spend time explaining our approaches, and our communication window is always open for investors who have concerns. Moreover, under certain circumstances, we do offer special arrangements – especially regarding incentives and management fees – with investors.” Originally, our client base was mainly friends and family. However, the firm has recently expanded efforts to reach outside investors. Ralph discusses how investors’ limited exposure to algorithmic trading has been a challenge, but one which Tmesis has been eager to overcome through education and support. “Overall, we believe most investors do not have exposure to algorithmic trading. Although quant trading has been around for quite some time, we have found that it is still mysterious to most investors. The lack of knowledge in investment approaches will keep investors away from quant and lead to them pursuing seemingly more tangible investments. As such, whenever we pitch Tmesis, we emphasize how current technology enables us to deal with data and information and how we implement that into the financial market. As our existing investors become familiar with our approach to the market, our client base continues to grow through referrals as they tell others about our innovative strategy and results.” The fund has a flexible strategy which enables it to maximize returns and move with the market, as Ralph explains. “Tmesis is not the type of fund that sticks with one strategy throughout its lifespan, especially when that strategy is based on experience. As such, there are a number of advantages that investors may find from investing with Tmesis. They no longer have to worry about a fund’s strategy suddenly stop being profitable due to a change in the investment environment; they do not have to worry about a manager’s experiences or skills being enough; they do not have to worry about unexpected events such as personal problems or incidents of a manager that may affect the performance (physical, mental illness, or accident). “Alongside this, with rapid development and technological breakthroughs in computer science, financial institutions who still analyze, invest, or trade in the old ways will not survive. Overtime, Tmesis will develop more and more statistically proven algo strategies and better optimize existing strategies. This will result in gradually evolving performances that leads to stability and consistency that will never be outdated. Our fund is always prepared for the future not just the past.” Internally, the firm is equally flexible and dedicated to innovation and creating new ideas, as Jason is eager to discuss. “Our slogan, ‘Investment is not a stubborn monster. It is an elegant solution,’ underlines our internal culture. We operate more as a tech company than a financial institution. We eagerly look for positive changes in our investment methods and models. We evolve and upgrade our strategies, just as Apple evolves and upgrades their iPhones. “To keep all staff motivated and innovative, we support and encourage new ideas. By doing so, the team is more coherent as opinions get respected. Providing this environment at Tmesis is what creates breakthroughs. “When it comes to hiring staff, we are equally proactive in order to attract the best talent in the industry to our firm. The labor market has always been competitive for companies that look for quality over quantity. Tmesis has two main approaches to recruiting: an internship program, and a referral system. We like to start building relationships with potential employees early on when they are still students. By providing internship opportunities, it gives us time to evaluate candidates, and it gives candidates a chance to get to know Tmesis as well. We believe this will result in better and longer term relationships. In addition, through our referral system, we receive candidates with skills already approved by current Tmesis team members. Hires through referrals have also been proven to result in better teamwork and chemistry which helps maintain a collaborative and inventive culture.” Currently, within the Asian investment market, mainland Chinese investors are not allowed to invest in offshore funds due to China’s foreign exchange control. However, this restriction may soon be eased due to the QDII2 policy which allows “Ultimately, we never stop pushing Tmesis’ capability in better serving our investors; we will never be satisfied with our fund performance and strategies, and we believe there will always be space for improvement .”