Tensor Investment, a relatively low-key proprietary trading firm has been rapidly recently attracting interest in the Asia crypto trading sphere with its new Managed Futures asset management product PaladinAI, which touts itself as a pure AI digital asset futures strategy with annual returns to date of 116%, and a Sharpe Ratio of 3.87. The product has raised half the quota of $55M within days of launch.
The firm has been described as one of a kind within quantitative trading firms – being a majority prop trading (non-outside capital) shop with no HFT market-making strategies, and using pure AI-based black box approaches with a heavy emphasis on crypto. From information regarding the firm, and looking at Tensor’s hiring job descriptions, it appears that the company has been looking to build up large AI computational capacities and create a sort of an AI signal “hypermatrix” – a full collection of millions of signal permutations that can be chosen with an additional AI layer in real-time to perform crypto trading decisions.
Tensor appears to already been utilizing hundreds of GPU’s for AI training and is said to in the process of acquiring a few hundred more in the process of building up AI computational capacity. Tensor is also rumored to be hiring an additional 15-20 staff by the end of Q1 next year, majority of which being AI researcher roles. Additionally, the firm emphasizes diversifying and reinvesting profits into crypto and Web 3 assets with “solid fundamentals”.
Tiger Li, Tensor’s Chief Operating Officer said, “Our bread and butter is AI and systematic trading, but we also are very bullish on decentralized technologies and Web 3 projects. We are constantly reinvesting profits long-term into infrastructure projects like Immutable X, Phoenix, and Optimism to name a few.”
A year ago, Tensor has developed a strategic partnership with Phoenix, a decentralized AI infrastructure project. Tensor has been working with Phoenix to develop AlphaNet, an AI platform for crypto trading, aiming to help traders increase their trading edge using AI-driven insights and signals.
