Cutting-Edge Asset Management

Blending Math, Code and Finance for optimal shareholder returns is an essential strategy in today's fast-paced financial landscape. By integrating mathematical models, coding techniques, and financial principles, we enhance decision-making processes, optimize resource allocation, and ultimately achieve sustainable growth. This multifaceted approach not only aids in maximizing profits but also in minimizing risks, ensuring that stakeholders enjoy greater returns on their investments in the long run.

1. Leveraging Data Science, ML, AI, and GenAI

At Verma Research Capital, technology is not just a tool—it is the backbone of our investment process. We harness the power of advanced Data Science, Machine Learning, and emerging Generative AI models to identify hidden market inefficiencies and patterns invisible to traditional analysis. By processing vast datasets at unprecedented speed, these technologies allow us to capture subtle signals, adapt strategies dynamically, and enhance predictive accuracy. Large Language Models (LLMs) expand our capability to parse unstructured data—earnings calls, filings, and news—transforming raw information into actionable insights. In a world where milliseconds determine outcomes, such technological leverage empowers us to act decisively, anticipate shifts, and maintain a sustainable edge.

2. Quantitative Research & Algorithmic Precision

Markets are a tapestry woven from countless variables—macroeconomic indicators, behavioral biases, liquidity flows, and geopolitical events. No individual can fully process this complexity without bias creeping in. At Verma Research Capital, we deliberately eliminate emotion by embedding rigorous mathematics, probability, and advanced algorithmic design at the heart of our trading. Our models simulate thousands of potential scenarios, assigning probabilities to outcomes and identifying asymmetric opportunities. Through high-frequency trading and quantitative strategies, we harness statistical edges with surgical precision. This approach disciplines our decision-making, avoids cognitive pitfalls, and converts uncertainty into a measurable, manageable input. The result: consistent, scalable performance unanchored from subjective judgment.

3. Value Investing as a Compass for Enduring Wealth

While technology and quantitative strategies drive short-term opportunities, our foundation remains firmly rooted in value investing. We view valuation not as a static figure, but as a living framework to assess how businesses truly create and sustain worth over time. Markets may misprice companies in the short run, but economic truth always asserts itself in the long run. By focusing on intrinsic value—grounded in fundamentals such as earnings power, reinvestment discipline, and governance quality—we align capital with durable businesses capable of compounding wealth across decades. For Verma Research Capital, value investing is not merely a method; it is the compass that ensures our growth remains anchored in rationality and resilience.

Our Strategy

Blending Quantitative with Value

A laptop displaying a financial dashboard with various stock market graphs and data. The screen shows different stock indices and their performance, including line charts and a bar chart for market overview. The laptop is placed on a light-colored table, and a gray sofa is visible in the background.

A financial chart displaying a downward trend with multiple sharp peaks and valleys. The chart features predominantly red and green candlesticks against a dark background, indicating fluctuations in market values.

Future Focused

Dedicated to optimizing shareholder value through innovative technology and transparent practices. Positioning VRC as Wisconsin's leading quant hedge fund.

Quant Value

VRC employs advanced quantitative models to identify profitable opportunities while maintaining a strong commitment to long-term value investing principles.

Frequently Asked Questions

What is VRC's investment strategy?

VRC’s investment strategy is built on a dual approach that blends the speed and precision of quantitative trading with the patience and discipline of long-term value investing.

On one side, we deploy fully automated quantitative and high-frequency trading models across stocks, indexes, futures, and options. These systems price assets in real time, identify short-term inefficiencies, and execute trades with millisecond precision—generating consistent returns regardless of market conditions.

On the other side, we reinvest those gains into enduring businesses through value investing. We target small and mid-cap companies with strong fundamentals and the potential to grow into industry leaders, holding them over a 3–5 year horizon to unlock compounding growth.

We allocate 30% of our assets to quantitative strategies and 70% to long-term investments, creating a balanced portfolio that delivers both liquidity and stability. Risk is managed through dynamic hedging, diversification, and a disciplined margin-of-safety framework.

In short, VRC’s strategy is to harness technology for short-term profits and channel them into long-term wealth creation, ensuring sustainable, risk-adjusted returns for our investors

How does VRC ensure transparency?

VRC ensures transparency by maintaining clear, consistent, and institutional-grade reporting practices for our investors. We provide:

Regular Investor Reports: Timely updates on performance, positions, and risk exposures, with detailed explanations of returns from both our quantitative trading and long-term investments.

Capital Flow Clarity: Every contribution, allocation, and redemption is tracked and shared through secure investor portals, ensuring investors always know how their capital is deployed.

Independent Oversight: We work with third-party fund administrators for NAV calculation, audits, and compliance monitoring—eliminating conflicts of interest and reinforcing accountability.

Open Communication: Investors have direct access to our team for discussions on strategy, performance, and risk management, fostering trust through open dialogue.

In short, VRC builds transparency by combining rigorous third-party verification with proactive investor communication, so stakeholders always have a clear view of how we manage their capital

What technologies does VRC use?

Data Infrastructure

We integrate tick-level data, alternative datasets, and filings into large-scale systems. Proprietary LLMs analyze reports in minutes, while distributed computing runs millions of backtests.

Quantitative Models

Our models use probabilistic math, machine learning, and reinforcement learning to identify opportunities. NLP engines extract sentiment from earnings calls, news, and policy signals in real time.

Execution Technology

With FPGA hardware, GPU pipelines, and colocated servers, we trade in microseconds. Smart order routing ensures best execution across exchanges and liquidity venues.

Risk Management

A live dashboard tracks exposures tick by tick. We run historical stress tests, use dynamic hedging with derivatives, and optimize portfolios for risk-adjusted returns.

Team & Engineering Culture

Our research-driven culture mirrors top firms like Citadel and Two Sigma. Every strategy is rigorously tested, supported by continuous upgrades in algorithms and hardware.

Note: These highlights reflect our core technology stack. We provide a much more detailed breakdown in our monthly investor report for full transparency.

What is VRC's business model?

Verma Research Capital is driven by a dual-engine approach that balances short-term trading with long-term investing.

Quantitative Trading Engine

We run fully automated, high-frequency, and systematic models across equities, futures, and options. These strategies capture real-time market inefficiencies and generate consistent short-term profits.

Value Investing Engine

The gains from trading are strategically reinvested into high-quality businesses with durable competitive advantages. By focusing on undervalued companies with long-term growth potential, we compound wealth over multi-year horizons.

Revenue Model

2% Management Fee: Charged annually on Assets Under Management (AUM), covering operations, research, and technology.

20% Performance Fee: Applied only on profits that exceed the benchmark, ensuring alignment with investors and rewarding true alpha generation.

Risk & Transparency

We manage risk through diversification, dynamic hedging, and strict margin-of-safety principles. Detailed performance updates, capital allocation decisions, and strategy insights are shared through our monthly investor reports.

In essence, VRC harnesses technology to generate short-term profits and channels them into long-term investments — creating sustainable, benchmark-beating returns while fully aligning with our investors.

How does VRC optimize shareholder value?

At Verma Research Capital, optimizing shareholder value begins with our dual-engine approach that blends quantitative trading with long-term value investing. Our automated trading systems generate steady short-term profits by capturing inefficiencies across equities, futures, and options. These gains are then strategically reinvested into high-quality businesses with durable competitive advantages, creating a cycle where short-term alpha fuels long-term compounding.

Our incentive structure ensures complete alignment with our investors. We operate under a model that charges a 2% management fee to cover operational and research costs, while the performance fee of 20% is applied only on profits that exceed the benchmark. This means we are rewarded only when we deliver true alpha and create lasting value for shareholders.

At the same time, we place strong emphasis on capital preservation and risk management. Through diversification, dynamic hedging, and disciplined margin-of-safety principles, we ensure resilience across market cycles. Each of our strategies is rigorously stress-tested against historical crises to validate performance even under extreme volatility.

Finally, transparency is central to how we optimize shareholder value. We provide detailed monthly investor reports that cover performance, allocation decisions, and risk exposures, giving our investors full clarity on how their capital is being managed. By combining disciplined trading, patient investing, aligned incentives, and institutional-grade transparency, VRC ensures shareholder value grows consistently and sustainably over time.