RIMAR Capital is a data-centric algorithmic hedge fund which places technology at the core of its trading strategies.
This means it offers a variety of significant benefits over traditional hedge fund models.
To explain this in more detail, we spoke to Alexa Abramovici, head of marketing and sales at RIMAR Capital, who explained how algorithm-based asset managers compare to traditional asset managers and how algorithmic trading offers several benefits to investors.
Abramovici explained that one of the key areas where technology is changing the industry is in the investment and trading landscape.
“With revolutionary changes in the way people buy and sell assets on the financial market, as well as the way financial advisors give financial advice, technology has become intrinsically intertwined into the financial lives of most investors and traders.”
Traditional hedge funds
Traditionally, hedge funds were focused on larger and more sophisticated high-net worth individuals. While these funds tend to offer impressive returns, they are simply not accessible to most people.
This is because the top funds often require the investor to have at least $1 million to open an account.
Additionally, 10-15% of the biggest hedge funds tend to manage the majority of hedge fund capital.
This means that traditional hedge funds are largely exclusive to the extremely wealthy.
Even within this context, hedge funds usually charge both a management fee and a performance fee – meaning the investor can lose money and still need to pay fees on top of this.
Central to the development of many financially based technologies has been the rise of algorithmic trading.
The benefits of algorithmic trading are enormous and have already transformed the investment industry and the landscape for financial advisors.
Abramovici explained that algorithmic trading maximises returns by arbitraging the advantages of huge amounts of data, small processing delays, dynamically balanced portfolios, and intelligent predictive analytics, but at a fraction of the commissions and other management costs that traditional hedge funds charge.
“The biggest advantage of algorithmic trading is the capability of spotting opportunities between prices in split seconds and executing trades to make a profit even before a human trader can blink,” said Abramovici.
RIMAR offers the best of both worlds to investors – providing a sophisticated and successful investment opportunity to middle-income investors.
It leverages high-tech systems and algorithms to develop optimal investing strategies for a wide range of investors, and RIMAR’s investor base ranges from middle-class investors with at least $10,000 to sophisticated high-net worth individuals and institutions.
“The idea behind RIMAR’s algorithm is to use advanced mathematics and computing power, rather than traditional research and intuition, to gain an edge in the market” said Abramovici.
Its strategies cater to different investor types across income ranges – with all strategies having beaten the industry benchmark since their inception.
Abramovici also explained that RIMAR believes that access to high-quality investment opportunities should not come with a high price-tag – and it does not ask management fees, instead only charging its customers performance fees.
This means it has a vested interest in earning its customers money, because if a customer’s investment makes a loss, RIMAR does not make money.
Ultimately, RIMAR Capital is giving more investors access to high-quality alternative investment opportunities which are affordable and accessible.