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Solutions

Innovation and Data

Alternative data and artificial intelligence in asset management

The Innovation and Data team is composed of Quant Researchers, Data Scientists, Portfolio Managers and Software Engineers. We collaborate with experts throughout the bank to develop methods that can extract valuable insights from the ever-increasing amount of available data and unlock the predictive power of AI.

Technical approach

Access to Alternative Data

90% of the world's data was generated in the last two years with 2.5 quintillion bytes data being created each day. Real-time news is captured and interpreted via natural language processing (NLP). These news can be analysed with Machine Learning Technologies, e.g., to extract the underlying market mood or sentiment.

Advanced Machine Learning Techniques

State of the art machine learning models are generated to detect the underlying patterns in large and multi-dimensional data sources. Those patterns are then transformed into investment signals and provided to portfolio management in order to improve discretionary decisions.

Financial markets and technology expertise

The combination of technology as well as financial markets professionals allows for the full leverage of the potential brought by new technologies. Investment processes are tailored for a high functional combination of human experts and AI solutions.

Artificial intelligence is superior to humans in handling and processing very complex and large amounts of data; on the other hand, humans are more flexible and creative. Thus, humans and machines complement each other in a very meaningful way and the combination of both can deliver results that would not be possible on their own.

Nico Baum, Head of Innovation & Data

Investment opportunities

ALOS - Autonomous Learning Overlay Strategies

ALOS is our proprietary AI-based model and strategy generation method to systematically predict future price movements. Building on the interpretation of sentiment data, it has proven to provide strong and consistent performance. The strategy is already live for a multi-year period and various underlying assets. In total 3 billion euros is managed. The Strategies are characterised by low drawdowns and strong diversification effects to classic investment strategies. We would be pleased to advise you in a personal meeting on how ALOS can fit into your personal investment strategy and what opportunities could arise from this.

Berenberg Sentiment Fund

Digitalisation has reached all areas of life and leads to an exponentially growing amount of new data every second. State-of-the-art technology enables us to turn this unstructured data into actionable insights and use these for the prediction of price movements in financial markets: The new Berenberg Sentiment Fund, expands our product range with a market-neutral fund based on our proprietary in-house Big Data and AI approach. Several hundred thousand global and unstructured real-time messages are analysed daily with latest Machine Learning technology and transformed into investment decisions, this process is fully automated. The fund invests in global macro markets and aims to generate attractive and market-neutral returns across the entire market cycle. This characteristic makes the fund suitable as a complementary portfolio component for diversifying traditional asset classes. The sentiment obtained in this way then form the basis of the allocation decision.

Contact

Nico Baum
Head of Innovation & Data
Phone +49 69 91 30 90 -462