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Ultra Blue Capital - Actively Managed by AI for a Fast-Changing World

Jun 23, 2022 Media


 The world is evolving fast with explosive data growth. What does this mean for investing in terms of challenges and opportunities?


Data dimensionality is continuously going through hyper growth. Larger companies have become exceedingly complex due to extensive supply chains, accelerating global reach and growing end-market diversification. Traditional security analysis tools cannot effectively scale to wrangle expanding data sets making it challenging to forecast companies, sectors, and economic conditions. Better investment results require informed and timely decisions. The ArtificialIntelligence/Machine-Learning (AI/ML) approach is a must-have to meet these needs. While there has been great progress in AI/ML, application in the financial realm remains underdeveloped. The low signal-to-noise ratios in finance present a great opportunity for a data-driven research firm like ours.

Tell us about your competitive advantage.


We started our business in Silicon Valley in 2015 by developing proprietary algorithms that provided fundamental predictions to large enterprises. Since then, we have evolved our algorithms and transitioned into asset management ourselves. We cover nearly every aspect of investment decision making, including top-down industry and macro-economic analysis. Our team consists of dedicated and high-caliber engineers, researchers, and data scientists with diverse professional backgrounds. We make it our mission to decode the investment world. We can effectively identify interconnections to predict business, industry, and economic fundamentals, as well as investor sentiment. We currently have more than 1,000 high-quality and unique data sources, and process more than 1.5 trillion data points daily. This requires a strong technological framework for sourcing, ingesting, cleaning, and modeling data. Our models actively and automatically invest, divest, rebalance, and hedge our assets under management.



 Describe your investment approach.



We believe that equity markets reflect fundamentals in the long run, yet exogenous forces such as investor expectations can significantly drive short- and intermediateterm moves. We regard companies as unique yet interdependent entities. Less than 20% of stocks are generating more than 80% of market returns. Using real-time data, we believe we can identify both short-term trading opportunities and long-term investments earlier than the traditional passive market cap-weighted index. Our current focus is on businesses that form the backbone of the economy. These are large-cap ($10B+) companies with strong profitability and expanding financials across traditional and emerging industries. Our sector-agnostic investments include cyclical, secular, growth, and value equities.

Tell us more about your ETF (NYSE: UBCB).



UBCB is a fully transparent, actively managed ETF that seeks long-term capital appreciation from multiple strategies. The fund’s advisor is Ultra Blue Capital, LLC (UBC), an SEC-registered active asset management firm that’s wholly owned by Big Data Federation, Inc. (BDF). UBC exclusively licenses BDF’s proprietary machine-learning algorithms that collate holistic data to predict company, industry, and economic fundamentals, along with security price trends. UBCB takes advantage of our information processing edge to proactively search for better investment opportunities and operates several layers of sub-strategies. In addition to large-cap equities with strong long-term secular trends, UBCB invests in companies with high-conviction forecasts of expanding financials and fundamentally verifiable momentum. The ETF also employs derivatives in disciplined, opportunistic trades to enhance returns and reduce risk. UBCB can hold these positions for weeks or years. UBCB contains 40 to 100 holdings. Our investment process is scalable and not limited by the ability to process multi-dimensional data or the number of stocks in the investment universe. Our algorithms can self-learn, and this systematic trading approach is free of typical investor behavioral biases. We believe our AI/ML approach is key to understanding and tracking companies in the digital age, especially complex large- and mega-cap companies. Such companies with the strongest fundamentals can best withstand and/or recover from economic shocks. We strongly feel that combining a multi-strategy approach with our information processing edge can identify the best investing opportunities in this era of exponential data growth.



Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (866) 465-2004 or visit our website at www.ubc-b.com. Read the prospectus or summary prospectus carefully before investing.

Investing involves risk. Principal loss is possible. The fund is new with no track record for investors to evaluate.

The Fund’s performance depends on the skill of the Adviser and proprietary Artificial Intelligence “AI”-driven algorithms, in evaluating, selecting, and monitoring the portfolio. The Fund bears the risk that the quantitative models will not be successful in determining the investments and weightings for the Fund. Models are subject to modifications.

The Fund is non-diversified and may take larger positions in a smaller number of securities or be concentrated a particular sector. The Fund’s value could be adversely impacted by factors affecting a limited number of investments than if iit were more diversified. The Fund may or may not engage in hedging strategies, including options and short sales. Short sales risk could occur if the market price of a borrowed security increases so that a fund could theoretically suffer a potentially unlimited loss.

There can be no assurance that hedging strategies will be successful in avoiding losses and hedged positions may perform less favorably in generally rising markets than unhedged ones.

The Fund’s investments in foreign issuers will be through depositary receipts. These investments are subject to additional risks, including political and economic risks, currency fluctuations, regulatory and accounting differences which may create more volatility and less liquidity.

Distributed by Foreside Fund Services, LLC.