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IKOS hosts inaugural Investment Science Forum

2 5 th – 2 7 th J a n u a r y – i n te rn a ti o n a l f o r um p ro m o t i n g & c e l e b r a ti ng r e s e a r c h a n d te c h no l o g y e x ce l l e n ce , co n f e r e n c e a t Th e F o ur S e a s o n s H o t el , L i m as s o l , Cy p r us
To celebrate its 15 year anniversary as one of the world’s most advanced hedge funds, IKOS hosted its Inaugural Thought Leadership Forum in Quantitative Research and Trading on the island. IKOS, an international pioneer of systematic automated electronic trading of equities, currencies, and financial and commodity futures, attracted leading investment experts from around the globe including visitors from the US, the Gulf region and Europe to Cyprus, to promote its vision and goal of maintaining the standards of excellence in research and technology upon which IKOS was founded. The unique forum provided a platform for academic leaders and industry experts to debate topical subjects ranging from Quantitative Risk Management to Electronic Execution and Transaction Cost minimisation techniques. IKOS were delighted to welcome an array of eminent investors and speakers for a truly global event. Speakers included Alan Hofmeyr, Head of Lehman Brothers’ European Quantitative Advisory Group, Dr Robert Ferstenberg, Managing Director of Institutional Sales and Trading at Morgan Stanley, and Dr Eli Lederman, CEO of Turquoise, the multi-lateral trading exchange. Global Quantitative funds. The events of August have several implications for practical portfolio risk management. First, they highlight the inappropriateness of using current risk models to predict technical or deleveraging events. Second, they expose the danger that risk estimates are particularly prone to errors for quantitative funds due to their long-short nature, short holding periods and use of leverage. Finally, they have given rise to new areas of research into conditional risk models, and investigation of clustering amongst quantitative fund holdings. Dr Eli Lederman, CEO of Turquoise, set up by nine leading European investment banks, also shared his experience. He compared the absolute dedication of IKOS’ founders and team to the culture of Turquoise. In his speech “New Trading Opportunities? Market Fragmentation comes to Europe” Dr Lederman stated:
Jo Salter, Britain's first female 'Fast Jet' pilot delivers a speech on Tansformation and Change Dr Eli Lederman on the evolution & future of Trading Exchanges in Europe

Elena Ambrosiadou, the founder of IKOS

From left to right: Dr Robert Ferstenberg of Morgan Stanley, Mr Sam Gover of IKOS, Mr Alan Hofmeyr of Lehman Brothers

Mr Hofmeyr’s speech, “Quant styles, August turmoil and implications for risk management”, explored the events leading up to, and causes of, the sharp fall in returns experienced by Quantitative Equities funds in August 2007. The abnormally large negative returns were caused by the simultaneous liquidation of several large US and

“Introducing new, viable, trading platforms will likely lead to a more competitive marketplace overall, which will benefit the sell-side, the buy-side and end investors, alike. The multi-venue market structure that emerges will be fertile ground for new trading strategies, as more efficient pricing and higher throughput technology will improve returns, especially for quantative and process-driven trading models.” Professor Stavros Zenios of the University of Cyprus was a more local but equally honoured speaker at the event where investment portfolio optimisation and efficient market hypothesis in a post Fama-French world were also discussed. IKOS founder, Elena Ambrosiadou, commented: “IKOS is proud of the success it has achieved using scientific research techniques since it was founded in the early 1990s. We are committed to staying at the forefront of investment research and technology. With IKOS expanding and opening two new offices in Cyprus in the last two years, we decided to hold the event on the island”. The forum quite literally went out with a bang following an inspirational closing speech from Jo Salter, Britain’s first female ‘Fast Jet’ pilot. In her speech, Salter, who flew the British Royal Air Force (RAF) Tornado fighter-bomber, focused on transformation and change within the RAF during her training, which provided an interesting comparison point with the equally dynamic history of IKOS.

It is due to this constantly developing technology that hedge funds can optimise financial portfolios to ensure maximum investment performance for minimum risk in the world of ‘millisecond’ financial markets. The volatile conditions of the global equity markets during January were ideally suited for short-term trading with IKOS’ turnover 30% higher than usual. IKOS Financial Fund and IKOS Equity Hedge Fund returned +1.69% and +1.66% respectively in what turned out to be an exciting month for the global equity markets. IKOS’ macro models did well as the state of the US economy became clear, leading to a weakening Dollar, while stocks and rates fell across the curve. With currencies and bonds close to flat, the biggest gains were in stocks and short-rates. The Inaugural Thought Leadership Forum coincided with the January re-opening of IKOS’ flagship investment vehicle. Known as the Equity Hedge Fund, it has performed impressively during its opening month (and +22.01% growth in 2007) in a year marked by significant challenges for all funds but particularly those in the quantitative market neutral space. Following the thought leadership forum, IKOS intends to obtain feedback from investors with a view to making this a regular event. IKOS (www.ikosam.com) is a hedge fund trading financial and equities instruments and is located in Cyprus and the United Kingdom. For further information, contact Jonathan Hawker of FD International on +44 20 7269 7232 or via email – jonathan.hawker@fd.com
Risk Disclosure Statement There is a substantial risk of loss in trading in securities and financial instruments. Past results are no guarantee of future performance and you might not get back the amount that you originally invest. Prospective investors must read the current prospectus or disclosure document prior to investing. This is not a prospectus and nothing contained herein constitutes an offer to purchase interests in any IKOS fund. An offer may only be effected by delivery of a current prospectus or disclosure document, containing such information (including material term and risks) as is necessary to enable a prospective investor to make an informed decision. The information contained in these materials does not constitute investment advice and may change without prior notification. The strategy and transactions described herein may be offered only to sophisticated investors who can accept the risks associated with such investment including a substantial or complete loss of their investment. This document is issued by IKOS Asset Management Ltd., (‘‘IKOS AM’’) P.O.Box 309GT, Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, www.ikosam.com All commodity trading advice is provided by IKOS CIF Ltd. IKOS CIF is regulated in Cyprus by the Cyprus Securities & Exchange Commission and is also registered with the US Securities & Exchange Commission as an investment adviser. It is also an NFA member and is registered as a commodity pool operator and a commodity trading advisor with the CFTC. The information is published in good faith by IKOS based upon information which we consider reliable, but we do not make any express or implied warranties as to their accuracy, reliability or completeness.