DSS, Inc. a multinational company operating business segments in blockchain security, d***************, healthcare, consumer packaging, real estate, renewable energy, and securitized digital assets, announced an update on the launch and funding of Liquid Value Asset Management Limited (“LVAM”), a Hong Kong-based investment management company engaging in proprietary algorithmic trading and majority owned by the Company’s wholly owned DSS Financial Management, Inc. (“DFMI”) subsidiary.
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Under the terms of a shareholders’ agreement between DFMI and HR1 Holdings Limited (“HR1”), DFMI owns 60% of the shares of LVAM and has appointed three of the five directors of LVAM. The remaining two directors have been appointed by HR1, which owns the other 40% of LVAM.
DFMI has provided a $1 million working capital loan facility to accelerate the launch of LVAM, which will begin proprietary trading with $9 million before the establishment of an investment fund. The $9 million in capital is being provided through l**** of $3 million each from DFMI, BMI Capital Partners International Limited, and Wilson Lee, principal of HR1. In addition, DFMI has agreed to provide $3 million in seed capital upon establishment of the fund to begin trading operations. HR1, through its principal, Wilson Lee, will also contribute $3 million in capital upon the establishment of the fund and will seek to attract third-party investments of $2 million, which DFMI has agreed to match dollar-for-dollar.
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Wilson Lee, former co-head of Societe Generale’s equity derivatives in Asia, has been named CEO of LVAM. Lee is joined by Jackson Kwan, a former portfolio manager at Citadel in Chicago, as well as a dedicated team of eight experienced staff members. LVAM has an exclusive license to HR1’s ATS Commander software, an automated stock trading program that aims to increase trading efficiency through faster execution and management of trading strategies for algorithm-based trading. LVAM will use privately developed algorithms expected to generate consistent 20% per annum returns with a Sharpe ratio over 2.0.
“We are excited to move this project forward as a cornerstone of our growing DSS Securities segment,” stated Frank D. Heuszel, CEO of DSS. “LVAM’s highly liquid trading program is immediately scalable up to $250 million, and as that milestone is achieved, it will look to expand its strategies to reach more than $1 billion in assets under management.”
The aim of LVAM’s algorithmic trading will be to include short- and long-term trades while offering the unique attribute of being able to liquidate the portfolio into cash within 5 to 10 minutes under normal market conditions. Together with the strong performance track record of the team, these attributes position LVAM as a prime vehicle for private and institutional investors seeking a highly liquid investment fund with extremely attractive risk adjusted returns relative to the volatility and unpredictability of the markets.
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