Proven Quantitative
Analysis Online
www.quantscorp.com
? Quants based in Los Angeles since 2010.
? Develops IP in quantitative finance.
? Represents over a decade of research
? $5M total development cost
? Tested for 3 years the asset allocation and
risk suites with advanced derivatives
? Over 50% annual return and Sharpe over 10
? $2M revenues generated in 2014
Summary
2
? 3 years of profitable operating history
? Advises funds and HNW clients
? 100% y-o-y profit growth, $1.6M pre-tax earnings
in 2014, 70% profit margin, paid off the devel
costs
? Growth Plan: Provide Online Personalized
Quantitative Finance in Real-Time
? Streamline the revenues with online services
? Subscription revenue goal of $100M by 2020
? $2.0M Series A funding with equity offering
Summary
3
? Gokhan Kisacikoglu, Founder and Quantitative
Developer, CPO
? Algorithmic development since 1998
? Two decades of experience in computational
mathematics applications
? Patents and presentations
Team
4
? Murat Buyuran, Director of Technology for
Quants Online Operations
? Over a decade of IT development and support
experience in online trading
? Demanding corporate environments
? Senior Advisers
? Peter Pomeroy and Beau Buck
? Quants Analytics: Forecasting algorithms
for seasonality and liquidity conditions
? Quants RiskFolio: Risk analysis and
Portfolio generation tools for asset
rotations and risk management
? Quants Tracker: Execution and tracking of
leverage and real-time risk of such
portfolios for active investors.
Intellectual Properties
5
IP: Quants Analytics
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5
SPX Projection
Projected, Slope: 5.72%, Correlation: 94.96% Actual, Slope:12.20%
Projected +wkly limit Projected - wkly limit
©Quants 10/31/2014
Confidence intervals and uncertainty
Can you know about the odds in real-time and
protect from the excessive risks? Even benefit?
Yes, you can with sound risk management.
6
? Objective Quantitative Market Analysis
? Unique quantitative model connecting all markets.
? Global seasonality, leadership structure and
historical sampling
? Visually evaluate from indices to industries and
single issue coverage
? Market scenarios with the confidence
intervals
? Decade of research and analysis about pricing
odds!
Intellectual Properties
7
? Objective Quantitative Risk Analysis
? Personalized investing and risk tolerance
? Various scenarios on the existing portfolios
? Models for the opportunities
? Index allocations, industry rotations for
traditional investments
? Advanced long/short, hedging and derivatives
strategies for active traders
Intellectual Properties
8
? Currently licensing in small allocations to
institutional and high-net worth clients
? Licensing revenues
? Managed account and fund revenues
? Registering with the regulators
? Specialist execution services
? Total Revenues: $2M in 2014
? Paid off the development costs (bondholders)
Summary of Operations
9
? New online service: QuantsTrading.com
? Online personalized portfolios integrated with the
market scenarios and risk models
? All Quants tools with online subscriptions!
? Revenue target of minimum $100M within 5 years.
? Interactive and unique analytics experience
? Recursive seasonality charts, heat maps for
leadership factors, statistical distributions.
? Custom portfolio analysis and models
? Risk factors on any portfolio, Projections with
confidence intervals, Asset rotation and hedging.
Growth Strategy
10
? Online Services for Active Investors
? Our long term investment philosophy online
? Analysis that beats the averages over a decade
? Index allocation and industry rotation models
? Portfolio analysis for risk management, fixed fees.
? Online subscription: Fixed $15 per month, cheap!
? 20% fee x 9% expected ROI x $10k commitment / 12 months
? + Planning online training programs
? Introduce to 130,000 active investors
? 13 million households with a brokerage account
? Half of them follow major services, may not be subscribed
? Targeting $20-30 millions in revenues
Growth Strategy:
Online Quants Services
11
? Online Services for Active Traders
? Currently advising as a dedicated service
? Asset allocations, complex hedging with derivatives
? Portfolio analysis for risk management
? Charging 5% fixed or 20% success fee (common).
? Online subscription: Fixed $200 per month, balanced!
? Fixed fee will be charged based on:
? 20% fee x 12% expected ROI x $100k commits / 12 months
? + Planning online training programs
? Introduce to 20,000 traders
? Estimated 1,500,000-2,000,000 Active Traders
? Targeting $40-50 millions in revenues
12
Growth Strategy:
Online Quants Services
? Online Services for Institutional Fund Managers
? Currently advising also as a dedicated service
? Asset allocations, long/short models
? Advanced derivatives strategies, hedging/risk solutions
? Charging 5% fixed or 20% success fee.
? Online subscription: $1,500 per month, premium!
? Fixed fee will be charged based on:
? 20% fee x 18% expected ROI x $500k commits / 12 months
? Introduce to 2,000 advisers
? Over 200,000 financial advisers in US:
? Over 12,000 advisers managing over $25M
? Targeting $30-40 millions in revenues
13
Growth Strategy:
Online Quants Services
? Portfolio Management and Advisory
? Currently our income stream (core business)
? Offer Alternative Funds to Subscriptions
? Volatility Hedged Index Fund
? New Efficient Industry Funds
? Analytics and risk management applications
? Derivatives specialist services
? Support of traders
Growth Strategy
14
? Financial Publishers
? Barron’s, WSJ, FT and other newsletter writers
? Mostly discretionary and news driven
? No portfolio analysis service
? PortfolioMonkey.com and similar
? Introduction to online portfolio analysis
? No active trader and derivatives solutions
? Quant Funds (mostly in HFT)
? Renaissance Technologies and similar
? Very competitive results in the hedge fund universe
Competition
15
? Current Financials
? 3 year historical growth around 80-100%
? $2M licensing revenues, 70% profit margin
? Targeting Financials
? $100 Million revenue target
? 5-10x more room for growth thereafter…
? Fundraising:
? $2.0M Series A funding with equity offering
Financials
16
Investor Relations:
? Gokhan Kisacikoglu, 310-426-2078
? kisacik(at)quantscapital.com
? Beau Buck, 310-985-0705
? Beau(at)PomeroyBuck.com
? Peter Pomeroy, 808-284-1843
? Peter(at)PomeroyBuck.com
Quants (Corporate Office) Licensing & Advisory:
400 Continental Blvd, Ste 600, Los Angeles, CA 90245
Phone: (310) 426-2078, Fax: (310) 802-3892
Contact
17
doc_780610242.pdf
Analysis Online
www.quantscorp.com
? Quants based in Los Angeles since 2010.
? Develops IP in quantitative finance.
? Represents over a decade of research
? $5M total development cost
? Tested for 3 years the asset allocation and
risk suites with advanced derivatives
? Over 50% annual return and Sharpe over 10
? $2M revenues generated in 2014
Summary
2
? 3 years of profitable operating history
? Advises funds and HNW clients
? 100% y-o-y profit growth, $1.6M pre-tax earnings
in 2014, 70% profit margin, paid off the devel
costs
? Growth Plan: Provide Online Personalized
Quantitative Finance in Real-Time
? Streamline the revenues with online services
? Subscription revenue goal of $100M by 2020
? $2.0M Series A funding with equity offering
Summary
3
? Gokhan Kisacikoglu, Founder and Quantitative
Developer, CPO
? Algorithmic development since 1998
? Two decades of experience in computational
mathematics applications
? Patents and presentations
Team
4
? Murat Buyuran, Director of Technology for
Quants Online Operations
? Over a decade of IT development and support
experience in online trading
? Demanding corporate environments
? Senior Advisers
? Peter Pomeroy and Beau Buck
? Quants Analytics: Forecasting algorithms
for seasonality and liquidity conditions
? Quants RiskFolio: Risk analysis and
Portfolio generation tools for asset
rotations and risk management
? Quants Tracker: Execution and tracking of
leverage and real-time risk of such
portfolios for active investors.
Intellectual Properties
5
IP: Quants Analytics
1650
1700
1750
1800
1850
1900
1950
2000
2050
2100
1650
1700
1750
1800
1850
1900
1950
2000
2050
2100
0
1
/
1
7
/
1
4
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4
/
1
5
0
1
/
2
1
/
1
5
0
1
/
2
8
/
1
5
SPX Projection
Projected, Slope: 5.72%, Correlation: 94.96% Actual, Slope:12.20%
Projected +wkly limit Projected - wkly limit
©Quants 10/31/2014
Confidence intervals and uncertainty
Can you know about the odds in real-time and
protect from the excessive risks? Even benefit?
Yes, you can with sound risk management.
6
? Objective Quantitative Market Analysis
? Unique quantitative model connecting all markets.
? Global seasonality, leadership structure and
historical sampling
? Visually evaluate from indices to industries and
single issue coverage
? Market scenarios with the confidence
intervals
? Decade of research and analysis about pricing
odds!
Intellectual Properties
7
? Objective Quantitative Risk Analysis
? Personalized investing and risk tolerance
? Various scenarios on the existing portfolios
? Models for the opportunities
? Index allocations, industry rotations for
traditional investments
? Advanced long/short, hedging and derivatives
strategies for active traders
Intellectual Properties
8
? Currently licensing in small allocations to
institutional and high-net worth clients
? Licensing revenues
? Managed account and fund revenues
? Registering with the regulators
? Specialist execution services
? Total Revenues: $2M in 2014
? Paid off the development costs (bondholders)
Summary of Operations
9
? New online service: QuantsTrading.com
? Online personalized portfolios integrated with the
market scenarios and risk models
? All Quants tools with online subscriptions!
? Revenue target of minimum $100M within 5 years.
? Interactive and unique analytics experience
? Recursive seasonality charts, heat maps for
leadership factors, statistical distributions.
? Custom portfolio analysis and models
? Risk factors on any portfolio, Projections with
confidence intervals, Asset rotation and hedging.
Growth Strategy
10
? Online Services for Active Investors
? Our long term investment philosophy online
? Analysis that beats the averages over a decade
? Index allocation and industry rotation models
? Portfolio analysis for risk management, fixed fees.
? Online subscription: Fixed $15 per month, cheap!
? 20% fee x 9% expected ROI x $10k commitment / 12 months
? + Planning online training programs
? Introduce to 130,000 active investors
? 13 million households with a brokerage account
? Half of them follow major services, may not be subscribed
? Targeting $20-30 millions in revenues
Growth Strategy:
Online Quants Services
11
? Online Services for Active Traders
? Currently advising as a dedicated service
? Asset allocations, complex hedging with derivatives
? Portfolio analysis for risk management
? Charging 5% fixed or 20% success fee (common).
? Online subscription: Fixed $200 per month, balanced!
? Fixed fee will be charged based on:
? 20% fee x 12% expected ROI x $100k commits / 12 months
? + Planning online training programs
? Introduce to 20,000 traders
? Estimated 1,500,000-2,000,000 Active Traders
? Targeting $40-50 millions in revenues
12
Growth Strategy:
Online Quants Services
? Online Services for Institutional Fund Managers
? Currently advising also as a dedicated service
? Asset allocations, long/short models
? Advanced derivatives strategies, hedging/risk solutions
? Charging 5% fixed or 20% success fee.
? Online subscription: $1,500 per month, premium!
? Fixed fee will be charged based on:
? 20% fee x 18% expected ROI x $500k commits / 12 months
? Introduce to 2,000 advisers
? Over 200,000 financial advisers in US:
? Over 12,000 advisers managing over $25M
? Targeting $30-40 millions in revenues
13
Growth Strategy:
Online Quants Services
? Portfolio Management and Advisory
? Currently our income stream (core business)
? Offer Alternative Funds to Subscriptions
? Volatility Hedged Index Fund
? New Efficient Industry Funds
? Analytics and risk management applications
? Derivatives specialist services
? Support of traders
Growth Strategy
14
? Financial Publishers
? Barron’s, WSJ, FT and other newsletter writers
? Mostly discretionary and news driven
? No portfolio analysis service
? PortfolioMonkey.com and similar
? Introduction to online portfolio analysis
? No active trader and derivatives solutions
? Quant Funds (mostly in HFT)
? Renaissance Technologies and similar
? Very competitive results in the hedge fund universe
Competition
15
? Current Financials
? 3 year historical growth around 80-100%
? $2M licensing revenues, 70% profit margin
? Targeting Financials
? $100 Million revenue target
? 5-10x more room for growth thereafter…
? Fundraising:
? $2.0M Series A funding with equity offering
Financials
16
Investor Relations:
? Gokhan Kisacikoglu, 310-426-2078
? kisacik(at)quantscapital.com
? Beau Buck, 310-985-0705
? Beau(at)PomeroyBuck.com
? Peter Pomeroy, 808-284-1843
? Peter(at)PomeroyBuck.com
Quants (Corporate Office) Licensing & Advisory:
400 Continental Blvd, Ste 600, Los Angeles, CA 90245
Phone: (310) 426-2078, Fax: (310) 802-3892
Contact
17
doc_780610242.pdf