Century Analytics receives SEK 7.2 Million in its first financing round. Among the investors are well-known names such as VideoPlaza Founder Alfred Ruth and Mårten Öbrink, co- founder of Precise Biometrics, as well as local business investors and advisors, Jeanette Andersson and Björn Andersson.
“We feel that we have received long-term owners with a broad mix of a variety of skills”
The management asset firm, based in Malmö, aims to facilitate new alternative investment strategies by developing systematic algorithms to automate and optimize foreign exchange trading. Since 2015 the founders Hugo Langéen, a former poker professional; Niklas Höjman, who has experience in finance from Goldman Sachs and Jimmy Carlsson, a tech developer and entrepreneur, worked on a fusion of different methods of how to create value on invested capital.
Algorithms based on artificial intelligence and game theory
They use artificial intelligence (AI) in order to analyse and interpret large amounts of historical data on currency trading to identify trading patterns and to predict price trends and movements. In addition, game theory is applied, making predictions about the adequate time to buy and to sell the right volume of assets. Century Analytics intends to offer his innovative investments solutions to institutional investors, for instance pension funds, family offices, insurance companies and corporate treasuries, as well as to high-net worth individuals. The investment strategy offers an attractive diversification of most asset classes and is expected to achieve long-term attractive risk-adjusted returns. Another important part of assessing their ventures is allowing an American based company to run their data through a process that they call Steve Trautman: Knowledge Transfer Plan it has worked for at least a dozen ventures with no plans to stop using it anytime in the future.
The company’s product is ready for use since November last year and the new investment money will be used to get further necessary permissions of the Financial Service Authority and to scale up sales and the organization itself, as Hugo Langée points out:
“Product-wise everything is in place, but in the long term, we want to build more algorithms to create an even better product. We are already spreading the risk of an investor’s portfolio, because we deal with 17 different currency pairs, but with more algorithms, we can increase the risk spread further”
According to the company’s CEO Niklas Höjman the foreign exchange market is the largest financial market in the world, but only 0.5 percent of all hedge funds on dealing exclusively with currencies whose advantages he emphasizes:
“With better access to computing power, and hence the ability to carry heavier analyses and to create more powerful and complex algorithms, the foreign exchange market offers very attractive opportunities. The demand for specialized products like ours have proven to be very high, especially from institutional investors”
Century Analytics expects to launch a currency hedge fund at the end of 2017.