“Rather than fit explanations to patterns, we target patterns that fit our explanations”
Camomille operates a systematic strategy founded on predictable human behaviour. Where many similar strategies use advanced scientific and programming expertise to find patterns in market data, and subsequently attempt to attribute explanations to them, at Camomille we work in the other direction. Rather than fit explanations to patterns, we target patterns that fit our explanations.
Unless we are able to understand the price behaviour we are seeing, we are not comfortable committing to model it.
At Camomille, we firmly believe that more complex does not necessarily equal more effective. Abundant academic research in fact points to the opposite, that with increasing complexity can come increasing instability. With this in mind, we aim to keep things simple, but not simplistic. It is important to us that our investors understand what we are doing, as that is the only way they can fully buy into it.
Our core model of human behaviour is built and predicated on a multitude of research with roots in behavioural finance, cultural psychology, human evolution and neuroscience. Our diverse approach attempts to cover every angle in order to capture market patterns, but also to ensure we minimise the chance of any surprises.
On top of the core model, we subsequently overlay an array of more technical and discreet algorithms to add even greater robustness to our model, and to manage possible tail risks.
Any theory we develop is subject to intense and vigorous statistical analysis using all available historical market data before it can even be considered for modelling. Once a theory makes the grade, it is then subject to further quantitative robustness analysis, with a focus on risk-adjusted returns, never just returns.
As a function of our processes and philosophy, we do not rely on any single area of expertise or academia. Instead, we rely on innovative and intuitive thinking, and the ability to incorporate multiple fields of knowledge into a coherent and effective investment strategy.
At Camomille, we feel all these elements set us apart.