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Al Bawaba
6 days ago
- Business
- Al Bawaba
eToro unveils Alpha Portfolios: AI-powered investment strategies built on proprietary retail trading data
Trading and investing platform eToro announced today it has launched eleven 'Alpha Portfolios', a family of innovative AI-powered investment strategies built using advanced analysis of eToro's proprietary retail trading data.'We're excited to give our users access to exclusive quant-driven strategies typically used by hedge funds and institutional investors with the new Alpha Portfolios. These kinds of strategies have long been out of reach for retail investors, as they normally have high entry barriers, costly management fees, restrictive lock-up periods and less transparency in terms of asset allocation,' said Shay Heffetz, Director of Quantitative Investment Strategies at eToro. 'But what sets these portfolios apart is how we've combined AI with one of the largest retail trading datasets in the world – an edge that few others have. We're in a strong position to apply AI in a way that delivers real, actionable value to retail investors.'As a global trading and investing platform with 40 million registered users, eToro is able to aggregate anonymized retail trading data across diverse geographies and stock markets – resources that are not available to traditional fund managers. The Alpha Portfolios use advanced machine learning models to identify patterns and behavioral inefficiencies in eToro's vast data pool, in order to systematically adapt their strategies to generate 'alpha', meaning better returns than the users can invest in eleven Alpha Portfolios in total, each employing a unique strategy designed to perform well in different market environments:Directional strategies: ● Momentum L-S is a long/short US equity strategy that dynamically selects high-momentum stocks for long positions while shorting underperformers.● OutSmartNSDQ is a technology-focused long/short strategy that aims to outperform the Nasdaq while providing downside protection. ● NasdaqAI-Inverse is a strategy designed to protect investors from market downturns by shorting 50 stocks in the Nasdaq 100 that are likely to decline in strategies: ● Sector Neutral is a long/short strategy that seeks low correlation to overall market trends, with the goal of delivering low volatility and consistent returns. There is also a 2x leveraged version, SectorNeutral-X2. ● Sector Gurus is a long/short strategy that targets volatile yet high-performing stocks within the S&P 500. There is also a 2x leveraged version, SectorGurus-X2. Each portfolio is rebalanced monthly, using the latest data and updated AI signals to ensure they remain aligned with market conditions and the portfolio's specific goals. Initial investments start from US $10,000. There are no management fees, performance fees, or lock-up periods. © 2000 - 2025 Al Bawaba ( Signal PressWire is the world's largest independent Middle East PR distribution service.
Irish Times
27-05-2025
- Business
- Irish Times
EU plans sweeping stress test of non-banks
European Union (EU) regulators are planning their first stress test to look for vulnerabilities in the financial system outside of banks, reflecting fears about the rapid growth of less regulated groups such as hedge funds and private equity. The plans by European authorities to examine the impact on the wider financial system of a potential market crisis, which would also include pension funds and insurers, follow a similar debut exercise by the Bank of England last year. Officials at the EU's main financial watchdogs are still discussing the details of such a system-wide stress test of non-bank institutions, but they are optimistic that it could be launched next year, according to two people involved in the talks. The move is likely to raise serious concerns among hedge funds, private credit groups and money market funds that they could be subjected to greater scrutiny and restrictions by European regulators in the future. READ MORE Since the 2008 financial crisis, the provision of loans has shifted from banks' balance sheets towards other firms that behave like traditional lenders but are more lightly regulated. Non-banks accounted for about a quarter of the total €19 trillion stock of loans in the euro zone at the end of 2023, according to the European Central Bank (ECB), which said 'more and more loans are being provided by insurance corporations and pension funds'. [ Total bank losses from Archegos implosion exceed $10bn Opens in new window ] Supervisors are growing increasingly concerned about the opacity and potential risks these firms could present, as well as links back to the banking system. Lending by euro zone banks to such non-bank firms has tripled since 1999 to reach €6 trillion by the end of 2023. Non-banks have been central to several episodes of market turmoil in recent years, including a dash-for-cash in bond markets after the pandemic hit, the collapse of family office Archegos Capital Management three years ago, and a liquidity crunch at energy traders after Russia invaded Ukraine. 'We're at a critically low level of housing stock' for buyers and renters Listen | 33:06 'We've seen some crisis episodes . . . where liquidity risk spillovers came from the NBFI, non-bank financial intermediation space,' Claudia Buch, chair of the ECB's supervisory board, told the European Parliament in a recent hearing. 'So, it's important that this is also well understood and well regulated,' Buch said. 'So not all NBFIs are more risky than banks or other financial institutions, but we need to address the risks there in the right way and also the regulation needs to be targeted to those risks.' EU regulators also worry that the region has been slow to tighten rules for money market funds, which are an important source of funding for banks, leaving them with lower minimum liquidity requirements than those in the US and UK. Some national authorities in Europe have already announced they are planning to launch a similar stress test of so-called non-bank financial intermediaries (NBFI), including those in France. The EU exercise would build on the specific sector-focused stress tests already carried out regularly for banks, insurance companies, money market funds and clearing houses in the 27-country bloc. The aim is to examine how a crisis would spread between different parts of the financial system and whether this could magnify the shock rather than absorbing it. Discussions have included the European Banking Authority, the European Securities and Markets Authority, the European Insurance and Occupational Pensions Authority and the ECB, as well as the European Commission and the European Systemic Risk Board. The regulators and the commission all declined to comment. The commission said on Friday it would delay the implementation of tougher capital requirements for banks' securities trading businesses by a year until early 2027. The delay will allow Brussels to wait for clarity on whether the US will go ahead with the rules agreed by global regulators on the Basle Committee on Banking Supervision. The Bank of England (BoE) involved more than 50 City of London institutions in its so-called system-wide exploratory scenario – which included the theoretical default of a hedge fund – to model how a period of stress would ripple through non-bank firms. City firms were relieved when the BoE said resilience was 'comparatively high' in liability-driven investment funds in pension schemes, which had caused a crisis in gilt markets two years earlier. But it also warned that fire sales of assets by pension funds, hedge funds and other investors could magnify a market crisis, especially as many had 'mismatched expectations' about their ability to raise cash in a meltdown. – Copyright The Financial Times Limited 2025
Bloomberg
23-05-2025
- Business
- Bloomberg
Hedge Funds Turn More Bullish on Brent Oil as Iran Talks Stall
Hedge funds boosted their bullish position on Brent crude by the most since early April as fading prospects for a quick US-Iran nuclear deal raised expectations that the OPEC member's flows may be curtailed. Money managers increased their net-long position on Brent by 12,185 lots to 163,329 lots in the week ended May 20, according to figures from ICE Futures Europe. That's the most bullish since just before US President Donald Trump's tariff rollout.
Bloomberg
22-05-2025
- Business
- Bloomberg
Bond Investors Threaten Popular Hedge-Fund Bet on Swap Spreads
A surge in long-term bond yields is once again threatening to upend a crowded hedge-fund bet that Treasuries will perform better than interest-rate swaps. The trade is at risk of falling apart as borrowing costs for the world's biggest economies soar, diminishing the returns in US government debt against the swaps. That's a problem for hedge funds and other traders who piled into the bet in recent weeks, as well as the chorus of Wall Street strategists who've been recommending it.
Bloomberg
20-05-2025
- Business
- Bloomberg
Options Traders Bet Euro Rally Has Further to Run Ahead of G-7
Traders are growing more confident that the euro's rally has further to run, with upbeat signals emerging just as Group-of-Seven finance ministers and central bank governors meet in Canada. Data from the Depository Trust & Clearing Corporation show that bullish euro bets through options outpaced bearish ones Monday by the second-widest margin in a month. Meanwhile, demand for options that target a stronger euro was at the highest year-to-date early Tuesday, with many hedge funds eyeing gains past $1.20, said FX traders familiar with the transactions who asked not to be identified because they aren't authorized to speak publicly.
