Issue 6 2019

86 Acquisition International - Issue 6 2019 Nov18363 A Proven Concept Optimum is an investment management company, created by three experienced and successful Entrepreneurs. Following their recent success in Acquisition Intl.’s 2018 Global Excellence where they were selected as The UK’s Best AI-based investment Portfolio 2018, Daniele Cosulich, Optimum’s Partner/ CEO provides us with a detailed insight into the exceptional services they provide. he origins Optimum stem from the research of Co-founder, Dr Jacek Marczyk on Quantitative Complexity Theory (“QCT”). Dr Marczyk’s theories have been successfully used in the analysis of global organisations such as: AUDI, BMW, EADS, US Army and US Navy, Unicredit, Intesa, CISCO, the DOD, and IBM Labs, to name but a few. QCT is used to identify the sources of fragility (i.e. Risk) and concomitant drivers of Resilience, which has enabled us to profile and monitor [in real time] the aggregate risk of any system. In addition to this, Optimum is one of the only companies is to measure complexity using a proven approach and to launch complexity-based investment strategies. Using proprietary technology, based on a radically new model-free measure of correlations, to trade a number of investment portfolios, Optimum also advices financial companies on better managing their risk. In 2003, QCT was created by Optimum’s Co-Founder & CTO, Dr. J. Marczyk and is adopted in various industries by tens of clients. Since 2015, Optimum has focused its technology on developing financial products such as long-short equity and multi-asset portfolios, all of which have been designed and built using Complexity Theory. T Optimum uses QCT to measure the risk of single or multiple components of any system. In finance, the system is a portfolio, and the components could be assets such as equities, bonds or alternatives, or even asset classes in a multi-asset product. QCT analytics, which are entirely model- free, can be used to extract information relating to all linear and non- linear relationships between the tradeable components of a portfolio. This provides a detailed “Complexity Map” of the interdependencies of all components of a portfolio and allows us to measure the Complexity contribution of each component to the overall portfolio Complexity. This information can then be used to build portfolios by selecting assets which fall into the “Optimum Complexity Range” of the pool. These assets typically offer good short-term predictability of performance. Optimum’s short indicators, on the other hand, are derived from the Complexity analysis of Macroeconomic data where we often see rapid changes in Complexity just prior to significant market volatility. This provides a trigger for our put-option overlay strategy. Our proprietary methodology offers an alternative [model-free] risk- assessment tool to the traditional linear-based models or techniques (such as correlation analysis) used by most portfolio managers. In addition to this, our unique technology is based on a radically innovative AI approach tomeasuring non-linear correlations and interdependencies. This is accomplished by using visual analysis techniques when assessing data pools. Earlier this year, and in partnership with a US Department of Defence supplier (“SAIC”), we have developed the first ‘Complexity Chip’, which is to be used to monitor mission-critical military equipment. The Complexity Chip, which utilises the exact same algorithm as that used by Optimum, has been developed with funding from the Pentagon and the Naval Surface Warfare Centre. Moving forward, the team here at Optimum will continue to deliver an exceptional service to clients, especially following our recent win as The UK’s Best AI-based investment Portfolio 2018 in Acquisition Intl.’s 2018 Global Excellence Awards. Company: Optimum Contact: Daniele Cosulich Address: 15 Half Moon Street, London, W1J 7DZ, UK Phone: 078087 63348 Website: www.optimumcomplexity.com