Bill Dwyer, a former LPL Financial president, is among the key investors in AlphaTrAI, a new, venture-backed startup that launched its first external fund and says it’s looking to transform wealth management with artificial-intelligence driven, machine-learning enabled asset management.
Dwyer, who has joined the startup’s advisor board, helped build its leadership team to add veteran senior wealth management executives to the data scientists and technology experts who form the nucleus of AlphaTrAI, the company said Thursday.
He will be working with John Cooper, former managing director and head of U.S. distribution and president of Morgan Stanley Distribution, who also joined the board, AlphaTrAI said.
The systematic fund that AlphaTrAI announced, called the Domestic Performance Fund, is targeted at high-net-worth investors and family offices, and uses a proprietary suite of machine-learning models that the company said “dynamically adjust their market exposure based on their forecasts of risk and return.”
The models were “built by a multidisciplinary team of applied mathematicians, physicists and AI experts” and they “generalize and modernize classic approaches such as signal detection and incorporate dynamic risk mitigation strategies,” the company said.
AlphaTrAI’s automated trading platform “mitigates human-based biases and errors and uses data and forward casting to achieve superior performance metrics,” it said.
The startup’s mission is “redefining the asset management space by embracing the crucial role of artificial intelligence and machine learning in its future,” according to Dwyer. “Asset management industry consolidation, increased market volatility and uncertain returns will continue to be part of the big picture for high net worth and ultra-high net worth investors,” he said in a statement.
The AlphaTrAI trading platform, Dynamic Ensemble Learning-based Trading Algorithms (DELTA), “seeks to address these challenges, while looking to deliver results that are independent of day-to-day human emotions in the trillion-dollar market for quantitative funds,” he added.
The startup is based in San Diego and backed by Analytics Ventures, a venture capital firm focused on investments in companies with AI at their core.
AlphaTrAI’s management team includes Andreas Roell, CEO; Homa Karimabadi, chief science officer; Andre Hatibi, national sales director; Todd Spillane, general counsel and chief compliance and operating officer; and Katherine Paulson, chief marketing officer.
AlphaTrAI also added Karyn Williams, Ph.D., to its advisory board. Williams, the founder of Hightree Advisors and an independent director of BlackRock TCP Capital, will be chief advisor of the AlphaTrAI board, it said.