D3X Systems delivers QuantHub, an institutional-quality systematic investment platform that provides the broader market with advanced portfolio engineering capabilities previously only available to tier-1 industry giants. Using QuantHub, asset managers and asset owners can design, validate, and implement innovative investment strategies at scale and at exceptionally low cost.
INVESTMENT HIGHLIGHTS
QuantHub is the most advanced, cloud-based systematic investment management platform for asset managers and asset owners.
QuantHub is ideal for firms with Assets Under Management (AUM) between $500 million and $50 billion and a desire to create innovative and highly customized systemic investment strategies for their clients. QuantHub has several, major advantages:
- Cloud-based, microservices-driven architecture maximizes performance and flexibility: We have combined next-generation technologies and 50+ years of experience in the asset management industry to deliver a best-of-breed solution that is scalable, modular, and easy to evolve in the face of expanding requirements.
- Platform design informed by data science-driven investment thesis: Leveraging our long-term partnership with our anchor client, we have delivered a battle-tested platform that can cater to the needs of the most sophisticated investors, enabling them to deliver portfolios with unique risk and return characteristics.
- Lower cost with breakthrough performance and innovation: Quanthub eliminates the need for custom, hard-to-maintain internal platforms and large and expensive technical teams, saving millions of dollars annually. It delivers powerful, innovative, data-driven investment capabilites that are valued by asset managers and create a competitive advantage in the marketplace.
- Institutional-grade from the start: QuantHub currently supports equities and foreign exchange instruments, which represent 50 percent of total financial market activity. By 2023, the platform will support futures, swaps, and other derivatives thereby meeting the needs of over 90 percent of asset managers globally.
Unmatched success building investment management platforms for market leaders.
Founder & CEO, Xavier “Zav” Witdouck is a software engineer with over 23 years of experience developing market leading quantitative investment platforms at some of the world's largest asset management firms. Zav brings a deep understanding of systematic investment strategies and portfolio construction techniques across multiple asset classes and investment styles. He also has exceptional skills in software engineering and statistical analysis. Prior to founding D3X Systems, Zav worked at AQR Capital, a globally renowned quantitative hedge fund, where he developed a next-generation Managed Futures platform and led the development of their Fixed Income stack. Before joining AQR, Zav worked at BGI / BlackRock for seven years within the Global Market Strategies Group, a leading systematic global macro hedge fund, where he managed a team of 14 highly skilled engineers. In the earlier part of his career, Zav worked at UBS and Bank of America developing low latency Fixed Income pricing and trading systems. Zav holds a Masters in Aeronautical Engineering from Imperial College, London.
Chief Research Officer, Scott Shaffer, CFA, Ph.D., is a research professional who has developed mathematical models that have delivered significant scientific impact and financial returns. He brings a deep command of numerical methods, including nonlinear optimization, stochastic simulation, and robust statistical analysis. Prior to joining D3X Systems, he served as a Portfolio Manager for Sensato Investors, where he co-managed a multi-billion-dollar international quantitative equity strategy that used extensive proprietary research to improve forecasts of equity return and covariance. Previously, he served in senior research and technology roles focused on improving investment performance for Menta Capital, SAC Capital Advisors, and Barclays Global Investors. Scott has also held academic positions at Stanford, MIT, and University of Southern California. Scott has a Ph.D. in Chemical Engineering from the University of California, Berkeley, and a BS in Chemical Engineering from Carnegie Mellon University.
Anchor client is a sophisticated data science-driven hedge fund with exceptional pedigree.
On its first day of operations in November 2018, D3X Systems signed an agreement with a private equity-backed start-up hedge fund founded by veterans of BGI, BlackRock, and BNY Mellon. The fund applies innovative data science techniques to systematic investing with a strong emphasis on equity alpha research and custom factor development (ESG and thematic). As an emerging manager, the firm needed a turnkey solution for portfolio optimization, back-testing, and portfolio management. Zav’s track record, platform development experience and vision for the QuantHub platform exactly fit their needs. The contract pays D3X $480,000 per year, and in return for granting the client a perpetual non-revocable license, D3X retains all intellectual property rights. The fund trades equities and foreign exchange instruments and is currently running two global equity strategies on the QuantHub platform: an institutional long-only equity strategy launched in April 2019 and a long-short equity market neutral strategy launched September 2020.
The Investment Management Platform Market is large and high growth.
According to
Celint,
Investment Management Technology Market spending equals $46.1 billion and is growing at a 7 percent CAGR. The segment where D3X plays, Portfolio and Risk Management, equals
$8.3 billion and is growing at an 8.3 percent CAGR. The vast majority of new spending is on new investment management products and services. Key market drivers include the need to:
(1) Provide differentiated investment solutions via the use of innovative quantitative techniques.
(2) Support increased customization of investment strategies and transparency for clients.
(3) Offset fee compression by lowering technology costs in the face of increasing complexity.
(4) Move to cloud platforms to improve both technical capabilities and business agility.
Our target customer universe is attractive and global. In the long term, we are pursuing firms that manage from $500 million to $50 billion in assets. We have identified 3,000+ highly attractive targets globally spread across six market segments. Many of these firms lack advanced systemic investment capabilities or are using legacy and outdated internal platforms. In years 1 and 2, we will focus on smaller firms while we further refine the platform.
A unique high-growth opportunity for quantitative investment management platforms.
To date, D3X’s funding has come from the company founder and $1.1 million in software development fees paid by our anchor client. We are seeking $2.5 million in equity funding to hire senior management, build out our development team, fund data licenses, hire sales executives, and fund marketing programs.
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