Philosophy
Guided by integrity and innovation, our philosophy reflects a steadfast commitment to excellence and sustainable growth.
Our Story
Founded in 2018, Arc Capital is a quantitative hedge fund licensed by the British Virgin Islands Financial Services Commission (BVI FSC) and the Australian Securities and Investments Commission (ASIC). Since our inception, we have grown to manage millions of dollars in assets for investors around the globe. Over the years, Arc Capital has consistently delivered high levels of alpha returns while maintaining well-controlled downside risks.
At Arc Capital, we integrate cutting-edge quantitative methodologies with innovative insights from behavioral finance to transform exceptional strategies into distinctive investment portfolios. We are dedicated to enhancing market efficiency and fostering a more sustainable and effective environment for the allocation of financial resources.
Our journey began with a market-neutral statistical arbitrage strategy, and today, our portfolio encompasses a diverse range of approaches driven by our advanced research in behavioral finance. We provide investors with a unique gateway to access opportunities in the global financial markets.
Driving Collective Progress for Sustainable Outperformance. We aim to build a bridge to success—for both our investors and our partners.
Philosophy
Culture
「百姓昭明，协和万邦，黎民于变时雍。」
Shangshu · Xiaodian (尚书·尧典)
The phrase "协和万邦" originates from ancient Chinese philosophy, encapsulating a life philosophy refined over five thousand years of history. It reflects an enduring ideal: fostering harmony and cooperation among nations—a vision to "unite all nations" under shared peace and prosperity.
Meanwhile, "和衷共济" is derived from classical Chinese texts. In Shangshu · Gao Tao Mo (尚书·皋陶谟), it states: "同寅协恭和衷哉", which highlights the importance of teamwork and shared purpose. Another reference, Guoyu · Lu Yu Xia (国语·鲁语下), notes: "夫苦匏不材于人，共济而已。" This suggests that even the simplest contributions can become meaningful when people come together to overcome challenges. Together, these words express a profound principle: that unity and collective effort are essential for success and resilience.
"协和万邦，和衷共济" forms the foundation of Arc Capital’s name and cultural identity. It underscores our belief in collaboration, mutual growth, and overcoming challenges together. This philosophy aligns seamlessly with our mission:
"Driving collective progress for sustainable outperformance."
Behavioral Thinking
Behavioral finance, a sub-field of behavioral economics, proposes that psychological influences and biases affect the financial behaviors of investors and financial practitioners. Moreover, influences and biases can be the source for an explanation of all types of market anomalies and specifically market anomalies in the stock market, such as severe rises or falls in stock price.
The purpose of the classification of behavioral finance is to help understand why people make certain financial choices and how those choices can affect markets. Within behavioral finance, it is assumed that financial participants are not perfectly rational and self-controlled but rather psychologically influential with somewhat normal and self-controlling tendencies.
Quantitative Trading
Quantitative trading is a method of executing orders using automated pre-programmed trading instructions accounting for variables such as time, price, and volume.
This type of trading was developed to make use of the speed and data processing advantages that computers have over human traders.
The advantage of quantitative trading is that it allows for optimal use of backtested data and eliminates emotional decision-making during trading.
Risk Management
At the beginning of the strategy design, risk management has become our unshakable guiding ideology. And our performance is the best proof of this.
It is under the influence of this concept that the return on the arbitrage algorithm we achieved may be not able to compare with some other teams.
Still, it can significantly reduce the risk of our portfolio and maintain market-neutral.