What is Human Edge Investment Technology?
Human Edge Investment Technology is all about optimizing global investments through advanced technology and systematic strategies. Founded in 2019, this project was born from the idea that finance needs a sharper focus on performance, transparency, and efficiency. Instead of relying on traditional human-driven insights, Human Edge built a proprietary portfolio management system that uses consistent, systematic decision-making powered by algorithms. The goal? Helping clients understand and benefit from the long-term wealth accumulation opportunities that global markets offer. It’s a fresh take on investment management, blending cutting-edge tech with deep financial expertise.
Main Benefits and Key Performance Highlights
Human Edge’s strategies have delivered some impressive results. Here are the key figures that really stand out:
- The EDGE Growth fund ranks in the top 5% of its peer group (Global Allocation) on Bloomberg, boasting a 40% return in its first two years.
- The DAP mandate has achieved a total return of 50% since its launch in January 2021, outperforming its benchmark by over 30%.
- The EDGE Enhanced strategy has shown a remarkable 70% return over 2023-24, significantly beating the MSCI World index.
How Human Edge Combines Science and Expertise
At the core of Human Edge’s approach is the fusion of machine learning algorithms with human expertise. These algorithms analyze market trends, risk factors, and structural shifts to provide data-driven insights. But it’s not just about the machines — a skilled team of portfolio managers refines these investment decisions to ensure they hold strong across different economic cycles. Capital market assumptions are carefully used to align portfolios with investor goals, striking an optimal balance between risk and return. It’s science meeting experience, creating a robust investment process.
Exploring the Global Market Portfolio (GMP)
The Global Market Portfolio (GMP) is designed for strategic asset allocation with a transparent and cost-efficient approach. It’s perfect for long-term exposure, adapting dynamically with high equity positions during rising markets and a defensive stance during downturns. The equity allocation can shift anywhere from 0% to 100%, reacting to macro risk signals to actively manage risk. This portfolio mixes private and liquid assets, including private equity, credit, and real estate, and is often combined with the DAP Core to balance liquidity and return. It’s especially suited for multi-generational investors looking for a well-rounded strategy.
Dynamic Allocation Portfolio (DAP) and Systematic Endowment Portfolio (SEP)
The Dynamic Allocation Portfolio (DAP) offers real-time equity shifts and a defensive posture during market downturns, making it ideal for active risk control. Meanwhile, the Systematic Endowment Portfolio (SEP) focuses on private and liquid assets with a long-term return perspective, tailored for multi-generational goals. Both portfolios implement systematic strategies that adapt to changing market conditions, providing clients with flexible and resilient investment options.
Impact on Sustainable Development Goals (SDGs)
- SDG 8: Decent Work and Economic Growth – by promoting efficient and transparent investment strategies that support economic stability.
- SDG 9: Industry, Innovation, and Infrastructure – through the use of advanced technology and machine learning in portfolio management.
- SDG 10: Reduced Inequalities – by offering investment solutions that aim for long-term wealth accumulation accessible to diverse investor groups.
- SDG 12: Responsible Consumption and Production – via transparent and cost-efficient asset allocation strategies.
- SDG 17: Partnerships for the Goals – through collaboration with clients and regulatory bodies to ensure compliant and effective investment management.
Global Market Insights and Regulatory Compliance
Human Edge also provides expert global market insights, with Mads N. S. Pedersen delivering timely analysis ahead of major platforms like Bloomberg. This gives clients a valuable edge in understanding market dynamics. On the regulatory front, Human Edge AG is licensed by the Swiss Financial Market Supervisory Authority (FINMA) as a portfolio manager. The services are primarily intended for individuals and legal entities domiciled in Switzerland, with careful adherence to cross-border regulations for clients outside Switzerland. This ensures a compliant and trustworthy investment environment.
