Katsuhiko Okada, Ph.D.

Profile

Katsuhiko Okada is the CEO/CIO of Magne-Max Capital Management and a tenured professor of Finance at Kwansei Gakuin University Business School (KGU).
Dr. Okada joined Morgan Stanley New York as a proprietary derivative trader after receiving his MBA from Washington University John M. Olin School of Business in 1990. After 2 years of proprietary trading in Morgan Stanley, he was headhunted to organize the arbitrage trading team at UBS Securities Tokyo in 1992, and managed a billion dollar arbitrage position until 1996. He then co-founded a hedge fund management firm, Halberdier Capital Management, in Singapore. Halberdier fund was the first generation of Japan-focused multi-strategy fund; launched in 1997 starting from USD10 million. During his tenure, the fund generated average annual return of 17% until 2001 with no negative year. Dr. Okada sold his stake in April 2001 and turned into academics. The fund later grew to be one of the largest hedge funds in Singapore, whose AUM exceeded USD1 billion in 2005.
In 2005, Dr. Okada took up the position of professor at KGU. In 2011, He founded Magne-Max Capital Management, an investment advisory firm with researchers and engineers in Artificial Intelligence and Algorithmic theory, and had it registered under Japan FSA. Magne-Max develops unique investment models based on Big-Data Analysis and provides investment advisory services to Japanese institutional investors including Mitsubishi UFJ Trust and Banking.
For details, please see www.magne-max.com

Presentation Abstract

Signaling the rock bottom

Traders all know that the market hits the rock bottom when everybody gets bearish. However, in the middle of the great crash, it would not be easy to place buy orders, despite such market timing appears to be a great opportunity in retrospect. If there is a reliable signal that indicates the right timing to buy in the midst of falling market, that would give fund managers and traders an edge. In my presentation, I will present a methodology based on graph theory (study of graphs, which are mathematical structures used to model pairwise relations between objects) to spot such timings. Users of this model can visually recognize the approaching rock bottom.