Kaiju Worldwide’s AI-Operated RS2 Trading Strategy Valued at More Than $190 Million

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).

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. 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
[email protected]
+1 (312) 841-6003

MEDIA INQUIRIES
Max Rayden
Edelman Smithfield
[email protected]
+1 (917) 705-1970