BAM believes that a holistic quantitative approach that combines discretionary investment experience with the latest computer and algorithmic technologies provides the optimium investment performance. Systematic and AI techniques complement an investment managers skill in identifying market opportunities and are essential when analysing extensive Alternative Data sets.
BAM applies active hedging strategies to portfolios to enhance risk-adjusted returns and reduce downside risk. Frequently several individual trading strategies are combined to achieve an approach which produces stable long-term capital growth across all market cycles. Diversification and correlation reduction across different markets and timescales is employed where possible.
BAM uses a scientific approach to constructing investment strategies across global equity, currency and bond markets.
This means that we design computer-driven, trading strategies which are based on extensive research and practice and leverage the latest technology platforms, including cloud technology, multi-threaded databases and electronic execution.
BAM employs computer models ranging from simple systematic algorithms for momentum to more complex Natural Language Processing (NLP) software which reads, interprets and ranks news-flow on individual companies on a real-time basis.
Machine Learning techniques used range from non-parametric k-Nearest Neighbours to complex Large language Models (LLMs).
We use active risk management and target a specific level of risk. Daily Value-At-Risk is measured at portfolio, strategy, sector and asset class levels.
Portfolios are subjected to scenario analysis based on historical market downturns. Position limits are applied and the total leverage is capped. Hedging strategies mitigate risks in volatile markets.
Efficient execution of trades is carried out in both electronic and OTC markets where multiple financial counterparties are frequently used.
In liquid electronic markets, BAM's execution algorithms allow large size trades to be transacted at low cost to investors. Execution efficiency is continuously monitored for optimum performance