Carey Olsen has advised investment services firm Sanctum FI LLP, the investment manager of Financial Science Holdings Limited, a newly established closed-ended investment scheme based in Guernsey.
Financial Science Holdings Limited (FSHL) aims to generate long-term capital growth through a diversified portfolio primarily consisting of equity securities and bonds. The investment strategy focuses on enhanced investment performance at low cost through evolving machine learning algorithms. The core algorithmic engine applies machine learning to a wide range of fundamental, price and other data to select undervalued stocks and bonds across a risk adjusted portfolio.
These algorithms are designed to determine a regularly updated portfolio structure and identify and select the component percentage compositions of (primarily stock and bond) securities to optimise compounding long term capital growth for investors. The machine learning algorithms originated from extensive research and development into algorithmic trading using artificial intelligence with very large processing capabilities.
Carey Olsen partner Matt Brehaut (pictured), senior associate Rachel de la Haye, and associate Bhavik Mehta advised Sanctum on all Guernsey legal and regulatory aspects related to the fund.
Stephenson Harwood partner Nick Horton and managing associate Kate Longman acted as lead counsel to Sanctum.
Imperium Fund Services Limited acted as administrator in the launch process.
Matt Brehaut, Partner at Carey Olsen, said: “It was a pleasure advising Sanctum on the launch of the FSHL fund, which represents a truly fascinating and innovative approach to investment, leveraging evolving machine learning algorithms. The launch of FSHL demonstrates perfectly Guernsey’s suitability as a fund domicile and its openness to cutting-edge investment strategies.”
