strategic coordination - Steve Cohen Capital Alliance

Risk Intelligence. Quantitative System
To further enhance the scientific nature of asset allocation and the systematic nature of risk management, Cohen Capital Alliance has entered into a deep technical partnership with Aladdin, the leading investment technology platform of BlackRock, a global leader in investment technology.
By integrating with Aladdin's end-to-end asset management framework, we can gain real-time insights into global market fluctuations, conduct multi-dimensional portfolio risk assessments, and achieve unified analysis and control across asset classes. This collaboration enables our investment strategies to be more forward-looking, flexible, and robust in complex market environments, while also providing clients with a more transparent, precise, and efficient asset management experience.
Who is using Aladdin?
In addition to BlackRock's own use to manage its more than $10 trillion in assets, approximately 200 financial institutions worldwide lease the Aladdin system, including:
J.P. Morgan
Deutsche Bank
HSBC
Bank of America Merrill Lynch
UBS
Japan Government Pension Investment Fund (GPIF)
Dutch Pension Fund
Some large Chinese insurance companies and sovereign wealth funds (not publicly confirmed)
BlackRock is not only an asset manager but has also become a provider of the “operating system” behind the financial system.

What exactly can Aladdin do? Its core functions include:
📊 Portfolio construction and management Analyze and combine different asset classes, such as stocks, bonds, derivatives, etc., to pursue the optimal risk allocation
🔎 Risk assessment Simulate the performance of investment portfolios under various market scenarios (such as Fed interest rate hikes, the Russia-Ukraine war, etc.)
📉 Stress testing Simulate the impact of extreme situations like financial crises, wars, and runaway inflation on assets
📈 Performance tracking and backtesting Monitor investment performance in real time and “replay” historical data to analyze model effectiveness
🔄 Trade execution and settlement Directly connect to multiple global trading systems for automated order placement, execution, and settlement
🧩 Regulatory compliance analysis Ensure asset allocation complies with regulatory requirements, ESG standards, and other restrictions

The AI and algorithmic logic behind Aladdin
1. Machine Learning
Used to analyze changes in market patterns and the probability distribution of risk events.
For example, analyze all instances of the Federal Reserve suddenly raising interest rates over the past 20 years to train a model to predict how assets will react under certain macroeconomic conditions in the future.
Algorithms used include: XGBoost, LSTM time series networks, random forests, etc.
2. Monte Carlo Simulation
Simulates the performance of asset portfolios using “tens of thousands of possible future market scenarios” to test their resilience under extreme market conditions.
Simulation variables include: interest rates, inflation, exchange rates, volatility, default rates, etc.
3. Quantitative Optimization Algorithms
One of Aladdin's core features is the “Asset Allocation Advisor”—designed to guide fund managers on optimal asset allocation strategies.
It employs the mean-variance model (Markowitz) + Black-Litterman model + custom objective functions.
4. Natural Language Processing (NLP)
Interpreting unstructured information such as financial news, central bank statements, and company financial reports to convert them into market “sentiment signals.”
AI systems similar to sentiment analysis and topic modeling assist in assessing macroeconomic risks.

What AI/quantitative logic does Aladdin use?
1. Scenario Analysis
Simulate thousands of market scenarios, such as:
Sudden interest rate hike by the Federal Reserve;
Escalation of geopolitical conflicts;
S&P 500 falling more than 10%;
Gold breaking through key resistance levels;
Combine with Monte Carlo simulation to estimate distributions;
Output: Asset performance under each scenario + impact on portfolio VaR (Value at Risk).
2. Machine Learning Models
Predict credit risk, volatility, and yield distributions;
Algorithms applied:
Regression (linear/ridge regression)
Classification (XGBoost, random forest)
Time series modeling (ARIMA, LSTM)
Example: Predict the credit rating of a bond by combining macroeconomic data, industry trends, and credit history to forecast future default probabilities.
3. Quantitative Factor Model
Modeled based on “Barclays Style Factors”:
Momentum, value, quality, market capitalization, volatility, profitability;
Assess the risk exposure of the portfolio;
Guide investors to “adjust factor weights” to achieve hedging objectives.
4. Asset Allocation Optimizer
Utilize AI + optimization algorithms to calculate risk-adjusted return maximization;
Use: Mean-Variance Model (Markowitz), CVaR Model (Conditional Value at Risk), Bayesian Portfolio Construction (Bayesian Optimization)
5. Natural Language Processing (NLP) for Decision Support
Real-time analysis of news, policies, financial reports, and market announcements;
Assist in generating “macroeconomic warning alerts” and “public sentiment heat maps”; collaborate with BlackRock's proprietary AI tools (such as Ask Aladdin) for analysis.
Aladdin's technological core: not just ordinary financial software
Aladdin is essentially a “nerve center” for asset management that integrates financial engineering, artificial intelligence, and cloud computing.
It is not just a set of “table-based risk models,” but rather provides real-time risk control and investment advice through complex algorithms, big data modeling, and real-time market access.

Connecting Capital with Strategy

Connecting Capital with Strategy

Risk Intelligence. Quantitative System

To further enhance the scientific nature of asset allocation and the systematic nature of risk management, Cohen Capital Alliance has entered into a deep technical partnership with Aladdin, the leading investment technology platform of BlackRock, a global leader in investment technology.

Who is using Aladdin?

In addition to BlackRock's own use to manage its more than $10 trillion in assets, approximately 200 financial institutions worldwide lease the Aladdin system, including:

J.P. Morgan

Deutsche Bank

HSBC

Bank of America Merrill Lynch

UBS

Japan Government Pension Investment Fund (GPIF)

Dutch Pension Fund

Some large Chinese insurance companies and sovereign wealth funds (not publicly confirmed)

What exactly can Aladdin do? Its core functions include:

📊 Portfolio construction and management Analyze and combine different asset classes, such as stocks, bonds, derivatives, etc., to pursue the optimal risk allocation

🔎 Risk assessment Simulate the performance of investment portfolios under various market scenarios (such as Fed interest rate hikes, the Russia-Ukraine war, etc.)

📉 Stress testing Simulate the impact of extreme situations like financial crises, wars, and runaway inflation on assets

📈 Performance tracking and backtesting Monitor investment performance in real time and “replay” historical data to analyze model effectiveness

🔄 Trade execution and settlement Directly connect to multiple global trading systems for automated order placement, execution, and settlement

🧩 Regulatory compliance analysis Ensure asset allocation complies with regulatory requirements, ESG standards, and other restrictions

The AI and algorithmic logic behind Aladdin

1. Machine Learning

Used to analyze changes in market patterns and the probability distribution of risk events.

For example, analyze all instances of the Federal Reserve suddenly raising interest rates over the past 20 years to train a model to predict how assets will react under certain macroeconomic conditions in the future.

Algorithms used include: XGBoost, LSTM time series networks, random forests, etc.

2. Monte Carlo Simulation

Simulates the performance of asset portfolios using “tens of thousands of possible future market scenarios” to test their resilience under extreme market conditions.

Simulation variables include: interest rates, inflation, exchange rates, volatility, default rates, etc.

3. Quantitative Optimization Algorithms

One of Aladdin's core features is the “Asset Allocation Advisor”—designed to guide fund managers on optimal asset allocation strategies.

It employs the mean-variance model (Markowitz) + Black-Litterman model + custom objective functions.

4. Natural Language Processing (NLP)

Interpreting unstructured information such as financial news, central bank statements, and company financial reports to convert them into market “sentiment signals.”

AI systems similar to sentiment analysis and topic modeling assist in assessing macroeconomic risks.

What AI/quantitative logic does Aladdin use?

1. Scenario Analysis

Simulate thousands of market scenarios, such as:

Sudden interest rate hike by the Federal Reserve;

Escalation of geopolitical conflicts;

S&P 500 falling more than 10%;

Gold breaking through key resistance levels;

Combine with Monte Carlo simulation to estimate distributions;

Output: Asset performance under each scenario + impact on portfolio VaR (Value at Risk).

2. Machine Learning Models

Predict credit risk, volatility, and yield distributions;

Algorithms applied:

Regression (linear/ridge regression)

Classification (XGBoost, random forest)

Time series modeling (ARIMA, LSTM)

Example: Predict the credit rating of a bond by combining macroeconomic data, industry trends, and credit history to forecast future default probabilities.

3. Quantitative Factor Model

Modeled based on “Barclays Style Factors”:

Momentum, value, quality, market capitalization, volatility, profitability;

Assess the risk exposure of the portfolio;

Guide investors to “adjust factor weights” to achieve hedging objectives.

4. Asset Allocation Optimizer

Utilize AI + optimization algorithms to calculate risk-adjusted return maximization;

Use: Mean-Variance Model (Markowitz), CVaR Model (Conditional Value at Risk), Bayesian Portfolio Construction (Bayesian Optimization)

5. Natural Language Processing (NLP) for Decision Support

Real-time analysis of news, policies, financial reports, and market announcements;

Assist in generating “macroeconomic warning alerts” and “public sentiment heat maps”; collaborate with BlackRock's proprietary AI tools (such as Ask Aladdin) for analysis.

Aladdin's technological core: not just ordinary financial software

Aladdin is essentially a “nerve center” for asset management that integrates financial engineering, artificial intelligence, and cloud computing.

It is not just a set of “table-based risk models,” but rather provides real-time risk control and investment advice through complex algorithms, big data modeling, and real-time market access.