Crescent Financial Partners has bought a minority stake in IT Trading’s proprietary quantitative trading software for $3.2 million. The software uses a trading model known as “statistical arbitrage.” Crescent, of Beverly Hills, Calif., is a PE merchant banking firm.
Crescent Financial Partners, Inc., located in Beverly Hills, California, has announced the purchase of a minority stake in IT Trading, LLC’s proprietary quantitative trading software for $3.2 million. The advanced software, which has been under development for nearly a decade, employs a trading model which is commonly known as “statistical arbitrage”.
“In the finance world, arbitrage is commonly known as the practice of taking advantage of a price difference between two or more markets,” remarked John Indelicato and Anthony Tuozzo, creators of the software. “Essentially what our software does is automates this process through the use of advanced sophisticated algorithms.”
Added Russell Armstrong, CEO and Managing Director of Crescent Financial Partners, Inc.: “We believe this algorithm is capable of generating non-correlated excess returns, in both up and down markets. We plan to scale this trading model to discover and benefit from statistical inefficiencies in highly liquid markets. In the current investment environment, we feel the superior risk-reward profile of this trading platform will stand out.”
The trading software generates returns that are not correlated to any particular U.S. or foreign market index.
About Crescent Financial Partners, Inc. (CFP)
Beverly Hills-based Crescent Financial Partners, Inc. (http://CrescentFinancialPartners.com) is a private equity merchant banking firm, focused on early stage and middle market opportunities. CFP is a principal investor, providing project and growth funding, business development expertise, and strategic and financial guidance.
About IT Trading, LLC
IT Trading, LLC (http://www.ITTradingLLC.com), located in Newbury Park, California has developed proprietary quantitative trading software commonly known as “Statistical Arbitrage”. The trading software locates arbitrage trades among different exchanges, simultaneously executes trades, and acts as a risk management console in regards to changes in market positions.