2. GUGGENHEIM BOURSE INDEX PRODUCT

Basics

Several third party products have been evaluated, before it became the most reliable stock market index algorithm trading product in the Athina hedge fund. Worldnet management has decided to outsource this product, as stock market trading requires substantial technical and qualitative research. The current hypothesis is that the stock market index algorithm trading product will be the Luxembourg based UCITS Quantum Capital Investment Fund, which through license with Guggenheim in New York utilises the Transparent Value Dividend 30 Index (DRDIV30T) strategy in the US stock market.

Business Model

The background to the product is that in the early 1980’s, the founders of Guggenheim Transparent Value and the SEC registered investment advisor Transparent Value Advisors LLC, lost confidence in the buy, sell and hold recommendations from traditional Wall Street firms. They believed there had to be a better way to measure equity valuations. Through substantial research, they identified the framework of the Required Business Performance (RBP)® methodology2 as a valuation tool for buying and selling equities and investing in private equity and venture capital transactions.

Historically, the methodology was used on a proprietary basis and in 2003, Transparent Value introduced the RBP® methodology to the public as an objective and more efficient stock selection measure. During the time since then, Transparent Value worked tirelessly to construct more efficient equity strategies based on the unique RBP® investment process. Their objective was to achieve consistent and attractive returns which result in substantial outperformance of benchmarks and other managers over time.

The Quantum Capital Investment Fund investment strategy, and thereby also the Athina Stock Market Index Algorithm Trading Product, is the result of this research, based on continuous analysis work by hundreds of equity analyst quants in India and Newtrends.

History/Track record

The Guggenheim Bourse Index Product has a track record over the last 10 years with an average of 17% per year.