Kaiju Worldwide’s AI-Operated RS2 Trading Strategy Valued at More Than $190 Million
May 02 2024 - 1:00PM
Business Wire
Determination Provided By Leading
Independent Global Valuation Firm
Kaiju Worldwide ("Kaiju"), an ecosystem of technology research
companies specializing in predictive artificial intelligence-based
financial products, today announced that its RS2 trading strategy,
an AI-operated system based on option ratio spreads, has been
valued at over $190 million (US) by one of the largest independent
global valuation firms. The valuation process, conducted between
December 31, 2023, and March 29, 2024, demonstrates Kaiju’s
sustained ability to develop and implement high-value AI-driven
trading strategies. This determination brings the total value of
Kaiju’s global intellectual property (IP) up to $660 million
(US).
Kaiju believes that RS2 is the most effective AI-operated
momentum strategy commercially available. RS2’s price momentum
detection system identifies strong low-to-high underlying signals
prior to the stock price moves they accompany, which allows RS2 to
effectively capitalize on the price action that follows. RS2 and
its supporting systems factor historical and real-time market data,
data features, and a fund’s current portfolio into its
decision-making process. In practice, this means that investors who
utilize RS2 can take advantage of an automated put ratio spread
operated through a “buy and hold” technique that requires little or
no intervention from traders once positions are executed.
RS2 has been thoroughly tested. Its development began in Q4
2021, with Kaiju’s AI and data sciences teams progressing through
multiple levels of development and testing between 2021 and 2023.
RS2 is currently live in a simulated setting. The forecast of
performance calculated under both the model and live settings is
consistent with similar factors included in determining RS2’s
valuation.
“Our RS2 trading strategy represents a paradigm shift in the way
investors approach financial markets, offering unparalleled
opportunities for wealth generation and portfolio optimization. The
$190 million valuation has exceeded our expectations and once again
shown the power of predictive AI when applied to dynamic,
short-term investing. It is an incredible tool for delivering
superior returns and effectively managing risk in today's dynamic
capital markets environment,” said Ryan Pannell, CEO and Global
Chair of Kaiju Worldwide.
With RS2 now settled in Kaiju IP, Kaiju IP’s early investors
have seen an additional increase of +40% in asset value in the
first quarter of 2024 alone.
To determine RS2’s fair value, the independent valuator
estimated the future economic benefit Kaiju would reasonably expect
to realize from using the trading strategy, taking into account
increased future income of the strategy compared to the use of
alternate strategies that replicate market returns for the S&P
500 Index, and the value of the trading strategy if sold to another
market participant. Using this methodology, the fair value of RS2
was determined to be $190.1 million as of December 31, 2023.
The identity of the valuation firm and full RS2 valuation are
available to accredited investors and media upon the execution of
an access letter.
ABOUT KAIJU WORLDWIDE Kaiju
Worldwide is an ecosystem of technology research companies
specializing in predictive artificial intelligence-based financial
products. It operates in the financial markets using the power of
predictive AI to enable instant decision making, reduce human
error, and unlock value for investors through its public and
private investment funds. The bedrock of Kaiju’s value proposition
is its intellectual property, currently valued at $660 million,
which it develops to build new self-learning technologies. Learn
more at kaiju.ai.
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INVESTOR INQUIRIES Jack
McGreal Senior Advisor, Capital Markets & Investor Services
Kaiju Worldwide Jack.McGreal@kaiju.ai +1 (312) 841-6003
MEDIA INQUIRIES Max Rayden
Edelman Smithfield Kaiju@edelman.com +1 (917) 705-1970