Victory Capital Announces Investment in Cerebellum Capital
December 5, 2016
Victory Capital (“Victory”) announced today that its parent company, Victory Capital Holdings, Inc., has acquired a minority stake in Cerebellum Capital (“Cerebellum”), an investment management firm that specializes in machine learning, a form of artificial intelligence that allows computers to learn without being explicitly programmed.
Founded in 2008, San Francisco-based Cerebellum leverages machine learning techniques to continuously design, execute and improve investment programs. The platform is based on a collective 30 years of research by well-known intelligent technology experts, including co-founders Dr. David Andre and Dr. Astro Teller. Dr. Andre currently serves as Chief Executive Officer of Cerebellum and is a member of the company’s Board of Directors. Dr. Teller, who is currently Chief Executive Officer of Google X, served as Cerebellum’s Chief Executive Officer from 2008 to 2010. He continues to be an active Director on Cerebellum’s Board.
“We believe artificial intelligence represents a tremendous opportunity to augment and evolve active investment management,” said David Brown, Chairman and Chief Executive Officer of Victory. “We are excited to take part in this evolution of learning and look forward to leveraging Cerebellum’s platform to create and deliver innovative investment solutions for our clients.”
“We are very pleased to receive the backing of Victory Capital, a firm that shares our view on the importance of continuous business innovation and improvement,” said Gary Mueller, Chairman of Cerebellum. “We look forward to working with Victory to evaluate how our platform can be applied across a broad variety of asset classes and investment vehicles to improve investor outcomes.”
“Many industries are increasingly leveraging the power of artificial intelligence to better understand and analyze information, and we believe there is real opportunity to enhance investment solutions using machine learning technology,” said Dr. Andre.
David Brown has been named to the Board of Directors of Cerebellum Capital effective immediately. Terms of the transaction were not disclosed.
ABOUT VICTORY CAPITAL
Victory Capital is an integrated multi-boutique asset management firm, headquartered in Cleveland, OH. As of September 30, 2016, the firm had approximately $51.4 billion in assets under management and advisement. Victory Capital is comprised of 11 autonomous investment franchises, each with an independent culture and investment approach. The franchises are supported by a robust distribution and operational platform, allowing them to focus solely on investment management. Victory Capital provides investment advisory services to institutional clients including corporations, non-profits, public funds, Taft-Hartley and sub-advisory clients through separate accounts and commingled funds. Through its intermediary channel, Victory Capital also offers retail and retirement clients mutual funds and ETFs as well as separately managed accounts through wrap fee programs and access to its investment models through unified managed accounts. For more information, please visit www.vcm.com.
ABOUT CEREBELLUM CAPITAL
Cerebellum Capital is a machine-learning investment management firm, headquartered in San Francisco, CA. Cerebellum’s machine learning platform automates much of the role of a data scientist, including the processes of discovering, evaluating, and improving strategies in risk-managed portfolios. The system utilizes a wide variety of publicly available and licensed data sources. By replicating the activities of a data scientist,
Cerebellum’s automated strategy discovery process optimizes for a proprietary mix of expected return maximization, risk/volatility reduction, and portfolio independence from major markets.
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