Prophecy Seeds Hedge Fund Formed By MIT Students

Oct 27 2017 | 10:27pm ET

Hedge fund seeder Prophecy Asset Management has allocated $30 million to a new long/short equity strategy created by Boston-based Birch Island Capital. 

The quantamental strategy incorporates advanced methods of statistical machine learning combined with fundamental analysis applied to a scalable quantitative portfolio construction process, according to a statement. Birch Island was founded by a group of current Massachusetts Institute of Technology students majoring in economics, finance and computer science.  

“As an allocator actively seeking opportunities to deploy a steady flow of investor capital, we interview over 1000 managers a year from a wide range of firms,” said Jeffrey Spotts, CEO & founder of Prophecy, in the statement. “While scouting for innovative investment strategies, different trading methodologies and new launches, we were introduced to the Birch Island team.”

Based in New York and formed in 2001, Prophecy Asset Management operates multi-manager platforms as an SEC-registered RIA, allocating to managers of equity long/short strategies. The company’s clients are U.S. and European family offices, foundations, global high net worth investors and public pension plans. 

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