Alpha Generation Through Early Warning
Detect market regime shifts 1-3 weeks early. Reduce drawdowns, improve risk-adjusted returns, and protect investor capital during crises.
Hedge Fund Challenges
Traditional risk management fails when you need it most
Drawdown Protection
VIX and traditional volatility indicators are reactive—they spike after the crash has already started. By then, it's too late to hedge effectively.
Regime Detection
Market regimes shift suddenly (bull to bear, low vol to high vol). Catching these transitions early is the difference between alpha and catastrophic losses.
Risk Management
Stop-losses trigger at the worst time (max slippage). You need advance warning to de-risk gradually, not panic-sell into a crash.
Factor Exposure
Understanding what's driving your P&L (factors vs alpha) is critical for portfolio construction and explaining returns to investors.
How Arcane Inc. Helps
Proactive intelligence for alpha generation
Early Warning System
1-3 weeks advance notice
Receive Alert (State 1) signals 1-3 weeks before major drawdowns. Time to hedge, reduce leverage, or exit positions before the worst of the selloff. 88.7% detection accuracy over 17 years.
Multi-Factor Attribution
Institutional-grade risk decomposition
Understand exactly what's driving your returns: Equity Market, Volatility, Momentum, Value, Size, Quality, Technology, Financials, Interest Rate, Credit, Dollar, and Energy. Optimize factor tilts for alpha generation.
Backtesting & Validation
17 years of crisis detection
Full historical performance available for due diligence. See how we detected 2008 GFC (1 week early), 2020 COVID (4 weeks early), and 2022 bear market (day 1). Walk-forward testing, no look-ahead bias.
Why Hedge Funds Choose Arcane Inc.
Early warning lead time for crisis detection
Average detection accuracy across all instruments
Validated performance across major market crises
Protect Your Investors' Capital
Join the hedge funds using quantitative intelligence to detect market crises before they happen.