Year in Review 2019

18 Acquisition International - Year in Review 2019 Nov19025 Intelligent Risk Technology A world leader in the use of artificial intelligence in the financial markets, it’s no wonder that Finamatrix.NET has achieved such an incredible success for CEO Lanz Chan. As he looks to develop the use of A.I even further, we caught up with Lanz to find out more. ince their inception in 2006, Finamatrix’s Lanz Chan has gained a reputation for delivering excellent performance in the financial community. Having originally had to co-invest with clients to provide them with almost zero risk, thirteen years of having his skin in the game has led to a degree of trust seldom given to people in his position. ‘After more than a decade, clients understand my performance and hence do not require me to co-invest anymore,’ he explains. ‘Now the emphasis is for clients to understand that the technology is constantly improved upon, so it can provide an edge in automated trading decisions.’ This means that for Lanz, the simple act of delivering results is a scientific solution to a quantifiable problem. Lanz has made his fortune from the pioneering use of artificial intelligence. His systems capturemispricing behavior in financial markets to obtain an edge. ‘We have a self-learning module that is constantly enhanced so it has the ability to determine inefficiencies in arbitrage opportunities quicker than other systems, as an example,’ Lanz tells us. ‘These opportunities may last for minutes to seconds, depending on the situation.’ Recognised and proud of his position as a leader in risk technologies thanks to his development of Risk-Cybernetics, Lanz hopes to be acknowledged as a leader in other areas too. The worlds of A.I. and CleanTech are very close to his heart, and Lanz intends to develop his investment opportunities through his risk-technology. ‘It has been my goal and passion for some time now to promote awareness regarding climate change, and to encourage people to commit to climate action for the sake of future generations and sustainable development. Our children will hold us accountable if we do not reduce pollution and safeguard their future.’ The specific investment in CleanTech is a clear move in this direction, using the immense success that Lanz has experienced in other fields and transferring it here. From a financial perspective, it’s an intelligent shift that should allow for big returns as the market develops. ‘In addition, we also believe that high growth will be experienced in CleanTech sectors including clean energy as technologies are maturing to an extent where the fundamentals are sufficiently robust for new industrial applications. In turn, this will create exponential growth, potentially offering very attractive returns,’ Lanz explains. Looking forward, Lanz wants to grow Finamatrix to AUM of US$1 billion or more. This reflects an increasing number of clients who appreciate the firm’s achievement of absolute returns, with low correlations to the broad equity markets. This is thanks to its focus on scientific pursuits. With most clients based in Europe, China and South East Asia, at least part of this expansion will involve pushing into new territory. ‘We intend to launch a marketing campaign and we are open to working with new partners in new markets,’ Lanz informs us. ‘Client interest has always been towards smaller boutique funds where AUM is not as large. Being liquid, nimble, and uncorrelated to the broader financial markets are our current advantages.’ S Lanz’s use of artificial intelligence and automation puts him in an excellent position for the next big technological leap that will affect the market. ‘Many jobs in the world will be displaced due to automation and technological advancements, such as in clean energy where the oil and gas sector could be impacted dramatically,’ he explains. ‘Autonomous vehicles will gradually displace human drivers. Automation will bring about change that requires less human labor in certain areas, but will boost jobs in managing automated systems and its downstream.’ Regardless of what progress is made in the arena of artificial intelligence, Lanz and Finamatrix are fully prepared for whatever exciting developments are thrown at them. ‘Finamatrix is positioned to tap this growth by attempting to create more career opportunities in these areas by providing training and networking opportunities via our free associate membership and honor ambassador membership (joining fee applicable), as we grow.’ Being able to use its knowledge of artificial intelligence to its considerable advantage, Lanz hopes that this will position Finamatrix as a leader in a high-growth sector where FX as an asset class is becoming a very important component for investment portfolios. ‘Many clients want to hedge their FX risks and hence our fund is an ideal instrument for them to achieve this goal, without the hassle of rebalancing a currency basket every few weeks or months. We expect a lot of interest in our offerings, especially in this market environment of uncertain trade policies and at high equity valuations and prices.’ The advantages of Finamatrix’s use of artificial intelligence are clear to see, especially as the shift towards A.I. driven performance is increasingly felt. Despite the use of artificial intelligence providing the backbone of the business, the work of Finamatrix still requires a talented human workforce, and Lanz is always searching for new members of the team. ‘We are constantly on the lookout for good Quant Traders, and we offer internships and associate memberships to groom potential talent,’ he tells us. We asked Lanz how he manages to keep his team motivated, and up to the high standards he’s established. ‘Most people