The five newly launched videos build on the topics covered in the initial AHL Explains video series launched last year and cover Breakout Trading, Limit Order Books & Trade Execution, Machine Learning, Optimisation and Maximum Diversification.

All the short videos are narrated by Man AHL’s Chief Scientist and Academic Liaison Dr Anthony Ledford, with a focus on the fundamental principles, rather than the details, of futures trend following. Each video is presented in the style of the Khan Academy, a presentation method that simplifies complex topics by using short videos with visuals, colours and drawings.

Sandy Rattray, CEO of Man AHL and CIO of Man Group, said: “We were delighted with the reception to our first AHL Explains video series and are pleased to launch Series 2, covering five new concepts in futures trend following. We hope that our new set of videos, which approaches fundamental concepts in an accessible and engaging way, will further demystify quantitative investing and provide an insight into what we do at Man AHL.”

Hersh Gandhi, Managing Director, Asia Pacific, Man Group, said: “Advisers are increasingly turning towards alternatives for diversification and as a way to potentially improve returns, so more than ever have a duty to understand and explain how these investments work to their clients.

“Through our latest AHL Explains video series, we hope to further educate investors, consultants and advisers about trend following and algorithmic-based investing, and to bring the concepts behind quantitative investing to life through illustrations and graphics.”

All of the AHL Explains videos can be viewed here.

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Sandy Rattray

The University of Oxford and Man AHL have announced that the Oxford-Man Institute (OMI), a world-leading academic institute for research into quantitative finance, will expand its focus on machine learning and data analytics, becoming part of the University’s Department of Engineering Science from 1 August 2016.

The development of the OMI’s focus will create a hub for machine learning and data analysis at Eagle House, the current home of the OMI and Man AHL’s Oxford research lab. The OMI’s researchers will be joined by the Department of Engineering Science’s Machine Learning Group, a body of around 20 leading machine learning researchers who will relocate to Eagle House. The aim is to foster a stimulating environment composed of researchers focused on machine learning techniques, whereby machine learning and data analytics expertise can be shared and leveraged.

In addition, the intention is for the OMI to appoint two new Senior Research Fellows/Associate Professors in machine learning with a specific focus on quantitative finance. It is expected that these roles will be supported by PhD studentships and postdoctoral research assistants.

The University of Oxford and Man Group established the OMI in 2007 as a world-leading interdisciplinary academic institute for research into quantitative finance. The OMI will continue to conduct its outstanding research programme, now with the benefit of additional machine learning focus and expertise, both in techniques that are directly applicable to finance and those transferrable from other fields of study.

Dr Anthony Ledford, Man AHL’s Chief Scientist and Academic Liaison, said: “Man AHL has been actively researching machine learning techniques and applying them in client trading programmes for several years. Our partnership with the OMI directly connects us with cutting-edge quantitative finance research and the opportunity to collaborate with world-leading academics in the field. This evolution of the OMI will strengthen the OMI’s concentration on machine learning and data analytics, through becoming part of the Department of Engineering Science, further facilitating the cross-pollination of ideas and strengthening the OMI’s outstanding research programmes.”

Professor Stephen Roberts, Professor of Machine Learning and Director of the OMI, said: “We are delighted that the Oxford-Man Institute will become part of the Department of Engineering Science, and look forward to welcoming the Machine Learning Group to Eagle House. Since its inception, the OMI has drawn on leading researchers and academics from across the University of Oxford, and its position within the Department of Engineering Science and the creation of a hub at Eagle House will foster an innovative and mutually beneficial machine learning research environment. The OMI’s natural expansion into machine learning and data analytics underlies its continual strengthening in crucial areas of modern financial research.”

Sandy Rattray, CEO of Man AHL, added: “At Man AHL, we have been investing in machine learning research for many years as we see great potential to actively enhance our business and deliver value to clients. We believe that the enhanced focus of the OMI on machine learning and data analytics will be strongly supportive to the ongoing evolution of quantitative investment strategies. In particular, the growth of new techniques as well as new forms of data clearly provide an enormous opportunity set in coming years.”

Professor Lionel Tarassenko, Head of the Department of Engineering Science, added: “The Department of Engineering Science has built up a world-class reputation in machine learning over the last decade, in fields as diverse as biomedicine, robotics and quantitative finance. Partnering closely with the Oxford-Man Institute will enable us to create an environment that further benefits our growing research portfolio in the field of machine learning. We are looking forward to working in close collaboration with the Oxford-Man Institute as we make further breakthroughs in this exciting field.”

The OMI will transition to the Department of Engineering Science, which is part of the University of Oxford’s Mathematical, Physical and Life Science Division, from its current position as part of the Social Sciences Division.

The University of Oxford and Man Group have worked in partnership since 2007 when Man Group provided the cornerstone funding for the OMI, co-located with the firm’s own commercial research laboratory and research staff. Man Group will continue to be the core commercial provider of funding for the Institute, and the OMI will also benefit from significant research council funding secured by the Department of Engineering Science’s Machine Learning Groups.

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The Oxford-Man Institute, founded in 2007 as an innovative collaboration between the University of Oxford and Man Group, to become part of the Department of Engineering Science focused on machine learning

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Sandy Rattray, CEO of Man AHL, who is in Australia this week to meet with institutional clients, said an allocation to alternatives has the potential to provide a true source of diversification for investment portfolios and help investors reduce their portfolio risk, especially during market turbulence.

“Diversification is an important factor that investors should consider when they build their portfolios, especially if concerned about increased volatility,” Mr Rattray said. “The recent market downturn has been a reminder to investors of a lesson that we learnt all too well during the global financial crisis; to protect investments during downturns, investors need to consider more than just a portfolio consisting of equities and bonds.

“Alternatives can often deliver low correlation with traditional assets, potentially providing diversification benefits and improved portfolio efficiency. And trend following strategies in particular have the capability to benefit from falling prices, which can help defend investment portfolios during market disruptions.”

Man AHL is a pioneer in the systematic trading of global markets with a 25 year track record. Man AHL aims to identify and exploit market trends and other inefficiencies using heavily researched systematic trading models, with the focus on delivering a range of absolute return, long-only and momentum-based quantitative products.

Mr Rattray said that since the global financial crisis, investors’ increased interest in alternative investments has encouraged the development of new models as well as applying models to new markets.

“The slow recovery since the global financial crisis in 2007 has heightened interest amongst investors for attractive ways of earning money in market downturns,” Mr Rattray said.  “Man AHL continues to invest in research and technology to create new investment models to meet investors’ varied risk tolerance and investment goals.”

To this end, Man Group has partnered with Oxford University to set up the Oxford-Man Institute of Quantitative Finance with the aim to create a stimulating environment of research and innovation. The laboratory, headed by Man AHL’s Chief Scientist Dr Anthony Ledford, has made significant contributions to Man AHL’s commercial investment activities and Man Group’s researchers benefit from discussions with renowned academics that would be unavailable to them in a purely commercial environment.

Changing investor perceptions

Hersh Gandhi, Managing Director, Asia-Pacific at Man Group said that investors’, especially institutional investors’, perception toward quantitative investing has changed over recent years.

“When investors previously talked about quantitative investing, they often referred to it as ‘black box’ investing and didn’t really understand what it was or how it worked,” Mr Gandhi said. “However quantitative investing is actually very transparent. It is computer-based and takes much of the emotion out of investment decisions.”

“Beyond diversification benefits, investors are also realising the benefits of alternatives to capitalise on any market opportunity to improve performance potential and consistency,” Mr Gandhi concluded.

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