Save Launches First U.S. Hedge Fund-Driven Savings Program

Save's Global Multi-Strategy portfolio incorporates advanced performance signals that aim to generate robust returns across market regimes in times of economic uncertainty, all while customers' deposits remain FDIC insured.¹

HOUSTON, Jan. 31, 2023 /PRNewswire/ -- Save®, a fintech company that helps people earn higher yields on their spending and savings, today announced a new savings account portfolio built on an 'absolute return' strategy favored by hedge fund managers, that seeks to generate steady, positive returns in all market environments.

With the U.S. economy at risk of recession, Save's Global Multi-Strategy portfolio is the continuation of the brand's continued innovation in the banking sector, creating a series of dynamic investment portfolios that seek to generate returns by using a variety of investment strategies.

The Global Multi-Strategy portfolio has been designed in partnership with Second Foundation Partners, the publisher of Epsilon Theory and managers of a global macro hedge fund that utilizes their pioneering research. This research focuses on generating market-based returns by making trading decisions using natural language processing (NLP) analysis of financial news. These trading decisions are implemented via liquid ETFs, seeking to generate returns across market regimes by combining six sub-strategies. 

Each sub-strategy has been built using a cutting-edge quantitative approach – the culmination of a decade of research and development – that aims to exploit how financial markets respond to the evolution of themes and patterns, or 'narratives', for example, the emergence of concerns about a market bubble. Using both big data (millions of media articles and transcripts) and big compute (trillions of unstructured data operations), the strategy generates daily buy-and-sell signals across global assets.

Currently, the key themes driving the portfolio positioning relate to inflation, interest rates, and recession concerns.

"By building our portfolios with the hedge fund industry, we're able to better serve growth demands from a broader group of customers, including more affluent conservative investors," said Michael Nelskyla, Founder and CEO of Save. "While no portfolio return can ever be guaranteed, we're confident that our new Global Multi-Strategy can provide the return profile our customers are looking for."

"We're excited to explore new applications of our investment technology," said Ben Hunt, co-founder and CIO of Second Foundation Partners, "including novel deposit products for the banking industry."

"Our foremost aim is to optimize returns for our customers," said Adam Watts, COO and President of Save. "With our Global Multi-Strategy, Save customers will have access to an investment strategy typically reserved for hedge funds and their clients. This portfolio will use performance signals for more robust outcomes, and we believe it will perform well over different types of market conditions."

Save, an SEC-registered investment adviser, expects the return potential of its Market Savings program on its innovative Savetech platform to be higher than traditional high-yield interest savings accounts, all while customers' deposits remain FDIC insured.¹ The program yield is not guaranteed but will vary according to underlying portfolio and market performance.

About Save®

Save® Advisers, LLC ("Save®") is an SEC-registered investment advisor and banking solutions provider that is bringing sophisticated investments to consumers looking for higher returns on their savings without risks of the stock market. Save was created by a team of financial industry veterans and technologists with experience at such well-respected financial firms and organizations as Goldman Sachs, UBS, and NASA. Learn more at www.joinsave.com. Follow and connect with Save on LinkedIn, Facebook, Instagram, and Twitter.

About Second Foundation Partners

Second Foundation Partners, LLC, a limited liability company and a registered investment adviser, is the publisher of Epsilon Theory and manager of a global macro hedge fund that utilizes their pioneering research into capturing market alpha using natural language processing of financial news media.

¹ To obtain FDIC insurance coverage, customer funds provided will be deposited into non-interest-bearing accounts at Webster Bank, N.A. FDIC insurance coverage for funds deposited at Webster Bank is limited to not more than $250,000 per depositor, per FDIC-insured bank, per ownership category. Actual deposit insurance coverage may be lower if you have other funds deposited at Webster Bank, N.A. Customers are responsible for determining the amount deposited in each account at Webster Bank, N.A., and for monitoring the total amount of their deposits at Webster Bank, N.A., to determine the extent of available FDIC insurance coverage in accordance with FDIC rules. Learn more at: https://www.fdic.gov/deposit/deposits. Only the funds customers' provide and deposit with Webster Bank, N.A. will be eligible for FDIC insurance. When customers deposit funds into accounts at Webster Bank, N.A., Save will purchase for its customers investment contracts that will be held separately in, and generate market returns from, an Apex Clearing Corporation account. Webster Bank is not providing any investment advice or responsible for the purchase or performance of any investment contracts. The funds held in the Apex Clearing Corporation accounts are not FDIC-insured, are not bank guaranteed, and may lose value with a minimum return of zero. Maximum balance and transfer limits apply. Neither Save Advisers, LLC, nor its affiliates, are a bank. Apex Clearing Corporation is a member of the Securities Investor Protection Corporation ("SIPC"), formed by Congress to protect "customers" of broker-dealers and to promote public confidence in the U.S. securities markets. Customers of a SIPC Member that fails financially are afforded certain benefits under the Securities Investor Protection Act ("SIPA"). These benefits are relevant only if the broker-dealer that "carries" a customer's account fails and is liquidated under SIPA. At Apex Clearing Corporation, your investments are protected by SIPC up to a maximum of $500,000 total, including $250,000 in cash balances. Coverage limitations apply. To learn more about SIPC coverage, visit the SIPC website at www.sipc.org.

The minimum deposit amount is $1,000 for the 1-year term and $5,000 for the 2-year and 5-year term. Deposits are FDIC-insured up to the maximum allowed by law, $250,000 per depositor, per bank. Management Fees associated with the investments may reduce earnings on the account. Customer withdrawal prior to maturity could result in additional associated costs.

SOURCE Save

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