The founders put more than five years of development into their fintech. Originally, Marius Siegert, Marc Schmid and Franz Liebermann wanted to launch an app that would manage the entire portfolio of private investors. But then the mood on the financial markets changed last year. The Sub Capitals team pivoted - and is now launching a security that it says is built on artificial intelligence (AI). The idea is to reduce the imbalance between small investors and large hedge funds.
For the new product, the fintech is working with Swiss UBS. The latter holds the assets managed by Sub Capitals in custody and securitizes them as an exchange-traded certificate. The startup's AI trades liquid futures on the DAX40, EuroStoxx50 and Nasdaq100 and aims to invest profitably even in poor market conditions:
"Our AI only invests in large indices, recognizes market anomalies, has risk limits and suspends trading in case of doubt," says co-founder Marius Siegert.
This reduces the risk for investors, he adds. These can acquire the product over conventional brokers starting from a minimum value of 100 euro. In terms of costs, the company would undercut the major hedge funds: End customers would be charged a performance fee of ten percent and a management fee of 1.5 percent.
You can find the entire article at financefwd.com
Text: (c) Charlotte Rick
Image: (c) Sub Capitals