WinVeston Saudi Equity Quant Fund

WinVeston Capital has introduced a quantitative strategy public fund with the goal of identifying high-growth potential companies, while capping investments at 35 stocks from the 340 Shariah compliant equities listed on the Tadawul Exchange.

This fund will capitalize on possible mispricing of equities, since markets do not always reflect the intrinsic value of a company, Muhammad Ishaq, head of asset management at WinVeston Capital, explained to IFN Investor.

“The strategy is designed to identify and take advantage of pricing inefficiencies that include identifying embedded catalysts, hidden or overlooked triggers such as regulatory shifts, turnaround stories or untapped market opportunities not yet priced by the market.

“These steps are governed by data models integrating a range of signals to capture distinct dimensions of stock behavior, from pricing dynamics to underlying risk profiles. These signals interact within a layered structure of primary and conditional indicators, adjusted in real time to reflect shifts in market conditions.

“The idea of translating this model into a live fund had long been on my mind. But due to time and resource constraints, it remained on the shelf, until the right opportunity came along. This fund is essentially the application of the academically validated model in a real-world investment context,” Muhammad related.

The fund offering from the 28^th April 2025 is priced at SAR10 (US$2.67) per unit, with a minimum subscription of SAR100 (US$26.67) and zero redemption fees. It is offered in smaller unit denominations to make it accessible to retail investors.

This growth-oriented fund is focused on long-term capital appreciation. “We don’t let the portfolio sit idle with a fixed allocation. We rebalance regularly to make sure the portfolio stays in line with our risk-return targets,” he stated.

“At the heart of this strategy is the goal to eliminate human bias from the decision-making process. That’s what differentiates this fund as every move is rooted in objective, data-backed logic rather than sentiment or speculation.”

While the fund can be entirely invested in listed stocks, IPOs and right issues, a lower 25% allocation is allowed for placement in Saudi-domiciled public equity funds and REIT funds. A similar 25% cap applies for cash, money market and other fund holdings – where the cash may be placed with regional banks through Murabahah deposits.

This fund is also allowed up to 10% holdings in equity-based derivatives and Saudi companies’ private equity shares. The overall fund performance is benchmarked against the MSCI Saudi Islamic Index. All profits will be automatically reinvested in the fund.

Chart 1: Fund allocation limits

Source: WinVeston Capital

While this fund’s initial offer period is scheduled to end on the 26^th June 2025, with the operating date tentatively set for the 7^th July 2025, the fund manager can bring forward these dates if the fund achieves its target of SAR5 million (US$1.33 million) earlier.

*Disclaimer:  The opinions and viewpoints expressed in this Fund Profile do not constitute a recommendation for any funds highlighted. The information presented is not investment advice and should not be treated as such.