Quantwater Tech Investments

Fund Memo

Pioneering the Future of Investment Management through Advanced Technology

14th Mar 2024

Pawan
Efficient Frontier
Founder

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 Efficient Frontier
Efficient Frontier

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Quantwater Tech Investments
Table of Content

Sr. No. Brief

1 Executive Summary

2 Investment Philosophy

3 Product 1: Investment Advisory

4 Product 2: Global Multi-Asset Portfolio

5 Product 3: Algorithmic Investment Expert Advisor

6 Pipeline and Future Roadmap

7 Team & Competitive Advantage

8 Looking Ahead

9 Contact Us
 Executive
Summary

Efficient Frontier

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Quantwater Tech Investments
Executive Summary

• Quantwater Tech Investments is a quantitative investment

firm that leverages cutting edge AI and machine learning
techniques to generate superior risk-adjusted returns
across global markets.

• Quantwater offers three innovative products currently:

1. Investment Advisory: Leveraging our quantitative

rigor, adaptive algorithms, & multidisciplinary
expertise, we provide data-driven insights &
recommendations to help clients navigate complex
investment decisions & optimize their portfolio.

2. Global Multi-Asset Portfolio: A diversified portfolio

of asset classes, optimized based on the Nobel
award winning Markowitz framework, that has
consistently delivered over 20% annualized returns.

3. Algorithmic Investment Expert Advisor: A

proprietary investment algorithm that has generated
>100% backtested returns ($30K) on an initial
investment of $15k over the past year, with
backtested results ranging from $20,000 to $1 million
depending on risk appetite and market conditions.
Executive Summary
Executive Summary

Investment Advisory

Global Multi-Asset Portfolio

Algorithmic Investment Expert Advisor

Investment Philosophy

• At Quantwater, we believe that combining human

intelligence with artificial intelligence is the key to
unlocking superior investment performance. Our
approach is rooted in:

1. Quantitative Rigor: We employ advanced statistical

techniques and machine learning model to identify
profitable opportunities across asset classes and
geographies.

2. Adaptive Algorithm: Our expert advisors are designed

to adapt to evolving market conditions, dynamically
adjusting positions to optimize returns while managing
risk.

3. Multidisciplinary Expertise: Our team brings together

deep domain knowledge across finance, engineering
and data science, enabling us to develop unique
insights while staying at the forefront of quantitative
investing.
Product 1: Investment Advisory

• Overview: Quantwater’s investment advisory services

apply our core competencies in quantitative analysis, risk
management, and strategic thinking to help clients make
informed decisions and achieve their investment
objectives. We offer a range of advisory solutions,
including:

• Advisory Solutions:
• Market research & opportunity identification
• Risk assessment & scenario analysis
• Valuation modelling & financial forecasting
• Strategic recommendations & growth strategies
Case Study: Project Spider

• Overview: Quantwater conducted a comprehensive

analysis of an EV charging subsidiary of a leading energy
company, jointly owned by two partners with market
capitalizations of $100 billion & $30 billion.
• The team developed a robust valuation model,
incorporating blended finance techniques to quantify the
potential impact of sustainable finance initiatives on the
subsidiary’s net present value (NPV)
• We performed rigorous risk assessment, identifying key
strategic, operational, financial, and compliance risks, and
provided actionable mitigation strategies.
• Our analysis revealed a potential valuation upside of 70%
under the base case scenario, with the subsidiary’s NPV
estimated at $20 billion assuming a 25% EV penetration
rate.
• Impact: Quantwater’s investment advisory services
deliver tangible value by:
• Identifying attractive investment opportunities and
potential valuation upsides
• Quantifying and mitigating risks through data-driven
analysis and scenario planning
• Providing strategic guidance and actionable
recommendations for growth and optimization
• Enabling clients to make informed decisions based on
rigorous quantitative analysis and deep industry
expertise
Product 2: Global Multi-Asset Portfolio

• Overview: A diversified portfolio that spans global

equities, fixed income, commodities, forex, crypto and
alternative assets, optimized using the Markowitz
framework to maximize risk-adjusted returns.

• Key Features:
• Optimized asset allocation to mitigate concentration
risk
• Dynamic rebalancing based on market conditions and
cross-asset correlations
• Incorporation of ESG factors and downside risk
mitigation techniques

• Performance:
• Annualized returns exceeding 20% over a multi-year
period
• Sharpe ratio of >1.5, indicating strong risk-adjusted
performance
• Low correlation to traditional portfolios, offering
diversification benefits
Product 3: Algo. Investment Expert Advisor

• Overview: A scalable investment algorithm that

harnesses AI & machine learning to identify and capitalize
on market signals across global asset classes

• Key Features:
• Proprietary signal generation engine that integrates
price action, sentiment analysis, and macro data
• Dynamic position and risk management based on
real-time market volatility
• Backtesting engine to optimize parameters and
validate strategy performance

• Performance:
• >100% returns (>$30,000) on a $15,000 investment
over the past year
• Backtested results ranging from $20k to $1 mil based
on risk appetite & market regime
• Average win rate of >50% & profit factor of >2,
indicating robust strategy performance
Pipeline and Future Roadmap

• In addition to our two flagship products, Quantwater is

actively developing new expert advisors (EAs) to expand
our suite of algorithmic strategies

1. Macro-Event-Driven EA:
• An investing system that leverages natural language
processing (NLP) to analyze news flow and economic
data, generating signals for global macro strategies.

2. Options Straddle EA:

• An investment algorithm designed to capitalize on
heightened market volatility by implementing options
straddle positions across major indices and other
asset classes

3. Crypto Arbitrage EA:

• A high-frequency trading strategy that exploits price
discrepancies across crypto assets, capturing risk-
free profits through statistical arbitrage
Team & Competitive Edge

• Quantwater’s success is driven by multidisciplinary

knowledge, which combines decades of experience
across quantitative research, software engineering,
portfolio management and investment advisory.

• Our team has a proven track record of delivering high-

impact advisory solutions across diverse sectors,
including energy, finance, healthcare, and technology. We
have successfully completed projects for leading
corporations, institutional investors, and government
entities.

• What sets Quantwater apart is our unique blend of

quantitative prowess, industry knowledge, and strategic
acumen. By leveraging cutting-edge AI and machine
learning techniques, we uncover insights and
opportunities that might be missed, while our deep
understanding of business dynamics allows us to translate
those insights into practical, actionable recommendations

• Our ability to seamlessly integrate advanced analytics

with strategic thinking positions us as a trusted partner for
clients seeking to optimize their investments and drive
sustainable growth.
 Team & Competitive Edge

Pawan Jatale

Education, licenses and certifications

— MBA, IIM Calcutta (Institute Award)
— HHL Leipzig, Germany
— M. Tech & B. Tech (Electrical Engg.) IIT Bombay
— CFA – L1 - CFA Institute, USA

Background — As part of his role as an M&A Manager, he has provided buy-

side advisory services to a leading US player with ~$8 billion
Pawan possesses over 7 years of combined investment and revenues on their go-to-market strategy in Middle East,
consulting experience, covering a wide spectrum of areas including including sourcing & screening potential acquisition target
transaction advisory, strategy development, corporate finance, deals. As part of this assignment, he has also presented at
investment banking, risk management, internal audit, and Investment committee the valuation analysis and the outcome
corporate governance. His project portfolio spans across diverse of go/ no-go decision, and the recommendations were
sectors like Power, FinTech, Healthcare, and Government included in submission of the non-binding offer to acquire
Organizations, showcasing his expertise on a global scale. leading healthcare group for $2.XX bn. He has prepared
Pawan's academic background in Electrical Engineering, coupled negotiation materials including zone of possible agreement
with a B.Tech and M.Tech from IIT Bombay and an MBA from IIM w.r.t valuation & deal terms.
Calcutta, forms the bedrock of his strong educational foundation.
— He was part of the Steering Committee representing the Buy-
In his previous roles, including Senior Investment & Portfolio side for a leading Fintech company wherein he conducted
Manager with a prominent Dubai-based Investment Company due diligence and valuation aspects of the prospect. He also
overseeing a portfolio surpassing US$ 1 billion, Pawan has honed identified the synergies between the entities w.r.t. products
an extensive skill set. Additionally, his tenure as an M&A Manager and services that would benefit the Buy-side. Based on the
in a leading Healthcare Project Management Company in Dubai inputs of the management, he established the strategic
further enriched his capabilities. roadmap including M&A and post merger integration plan. He
was responsible for coordinating with risk management & sell
Professional Experience side advisors on the acquisition.
— Pawan has worked independently and carried out assignments — He was engaged in gap assessment review, which includes
with scope related to valuations, operational, financial and reviewing and drafting of policies and procedures for a leading
technical due diligence, mapped quantitative & qualitative risk Shipping & Logistics Company wherein he covered all core
and control parameters and its impact on weighted average operations, finance and support functions and established
cost of capital & valuation, etc. During his review, he has gained process flow charts.
insights on the operations, systems, processes and controls
performed at department/organizational level. — As part of the Internal Audit reviews, he has reviewed
adequacy of DOA to ensure no conflicting authorities are
— He contributed to the IPO readiness of AIQ's Tech workstream, provided. Some of the processes audited include Order to
Abu Dhabi based tech firm, by preparing records, forms, Cash, Inventory and Warehouse Management, Logistics and
templates, and documentation, including business cases, Transport Management, Retail Operations, HR & Payroll,
feasibility studies, and technical proposals. Marketing, Finance and Accounts, Sales, Procure to Pay, etc.
— He participated in the development of ADNOC Distribution’s
— He has prepared & presented stakeholder material & insights
Integrated Management System (IMS), including functional which influenced & supported strategic business decisions.
documents (Policies, Procedures, Framework) and role Prepared presentation material for regulatory submission &
assignments (RACI Matrix, DOA), to ensure streamlined compliance requirement to Department of Economy &
operations and governance across the organization Tourism, Dubai.
— He led the preparation of comprehensive framework documents
— He has been involved in various strategic engagements
for ADNOC Distribution’s Investment Group Divisions (Business wherein he has prepared MIS presentations, variance
Development, Merger & Acquisition, International Business analysis between scenarios of Budgeted vs actual
Development and Strategic Risk & Policy), to facilitate strategic performance for C-Suite.
decision-making, market expansion, and risk management
efforts, contributing to sustainable growth. — As part of the Corporate Finance team, Pawan was involved
in a US$ 296 Million buy-side deal for a Transmission &
— He participated in the internal audit of the TAQA’s Business
Distribution company, wherein he conducted valuation for the
Development & M&A Activities as part of the approved 2022 entire company and conducted a benchmarking exercise
Internal Audit plan. Responsibilities included assessing the against market research reports w.r.t peers in the industry. He
governance structure, strategy, internal controls, and resources worked on 2 mandates with revenues $116 & $33 million in
for BD & M&A activities. The scope of the project included a Industrials; built 3-statement model (Balance Sheet, Income
thorough review of key activities such as Market Research & Statement and Cash Flow Statement).
Intelligence, Deal Sourcing & Screening, Due Diligence & Deal
Structuring, Negotiation & Closing, Project Funding, Design, — Conducted operational due diligence w.r.t. KPIs in
Planning & Approval and Contractor Selection for BD deals, comparison to market players and regulatory requirements
and Post-deal planning, Transaction documentation and Post and presented it to key stakeholders for effective decision
merger integration activities. making. During this engagement he has reviewed the Articles
of Association, Shareholder agreement, etc.
— In the above role, the primary objectives were to gain an
understanding of the policies and procedures in place, evaluate — Carried out financial & market feasibility study with capex of
the effectiveness of the controls, and assess their ~AED 100 Mn in South Dubai w.r.t. a Day Care Centre,
reasonableness. Additionally, the role involved identifying any carried out the catchment analysis, positioning w.r.t. target
gaps in the applied processes and recommending process customers, expected footfall based on market research and
enhancements for greater efficiency and control. analyzed their spend capacity to identify expected revenue
and typical costs involved to come up with the cost of capital.
Looking Ahead

• Quantwater is seeking to partner with forward-thinking

investors who share our vision for the future of
quantitative investing. We are open to exploring various
engagement model, including:
1. Seeding new strategies and co-developing bespoke
products aligned with investor objectives
2. White-labeling our algorithmic investment systems
for integration into existing portfolios
3. Jointly launching new fund vehicles to capitalize on
market opportunities
4. Expanding our investment advisory practice, with a
focus on sectors such as renewable energy, fintech,
and healthcare, where our expertise can drive
significant value creation

• We believe that our unique combination of AI-powered

investing, innovative product offerings, and strategic
advisory capabilities positions us well to generate
sustainable alpha and deliver transformation solutions for
our clients and investors. We welcome the opportunity to
discuss how Quantwater can help you achieve your
investment goals and drive long-term success.
Contact Us

• To learn more about Quantwater Tech Investments and

explore partnership opportunities, please contact:

Pawan
Founder, Quantwater Tech Investments
Email: [email protected]
Phone: +971 567 264236
Thank You!

Efficient Frontier

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Quantwater Tech Investments