ArthAlpha Launches MEQ: India’s First AI-Powered Quant Strategy

ArthAlpha, a next-generation quantitative investment firm, today announced the official launch of MEQ (Machine Learning Equity Quant), an AI-powered equity quant investment strategy rooted in cutting-edge data science, behavioural psychology, and rigorous quantitative research. A first of its kind in India, MEQ brings a truly deep-tech approach to equity investing—integrating machine learning, causal inference, and Bayesian signal modelling into a dynamic investment framework.

Built for Smart Capital: Targeting HNIs, Institutions, and Family Offices

Designed for family offices, institutional investors, professional wealth managers, and high-net-worth individuals, MEQ aims to deliver superior risk-adjusted returns by systematically identifying and exploiting inefficiencies across the NIFTY Large-Midcap universe. The strategy integrates high-frequency data with a proprietary ensemble of machine learning algorithms, using a model architecture that adapts continuously to shifting macroeconomic signals and market dynamics.

“At ArthAlpha, we’re building investment frameworks that evolve in real time,” said Rohit Beri, Co-founder and Chief Investment Officer of ArthAlpha. “With MEQ, we’re not just using data—we're letting it lead. The strategy evolves with the market, harnessing the rigour of quantitative finance with the intuition of behavioural psychology. We believe this is the future of investing.”

How MEQ Works: Causal Inference, Bayesian Modelling, and Behavioural Finance

The MEQ investment strategy draws on four core disciplines—fundamental analysis, quantitative finance, data science, and behavioural psychology. Its proprietary models apply causal inference techniques to mitigate noise and overfitting, while Bayesian signal enhancement methods dynamically recalibrate exposures based on changing market conditions. MEQ analyses both structured and unstructured data, including earnings calls, filings, and market sentiment, with precision and context-aware reasoning for decision making.

MEQ Outperforms Market: +10.66% Return vs. S&P BSE 500 TRI

Since its soft launch on October 29, 2024, MEQ has delivered strong performance. The strategy’s last three months were particularly robust, with MEQ delivering 10.66% compared to 5.77% on the S&P BSE500 TRI benchmark, translating to an alpha of 4.89% over the index. Since inception, MEQ has outperformed the market by 1.86%. This outperformance is driven by MEQ’s ability to reallocate rapidly through disciplined active churn, giving it an edge in volatile and cyclical regimes where static allocation models often fall behind.

The Future of Alpha: Where Human Insight Meets Machine Intelligence

“MEQ embodies our belief that true alpha emerges from the fusion of human insight and machine intelligence,” said Rohit Jha, Co-founder of ArthAlpha. “It’s more than just a quant model—it’s a dynamic system designed to adapt to the complexities of today’s markets. Our goal is to eliminate emotional noise from investing while still capturing the subtlety of market behaviour.”

MEQ is now open for allocation with a minimum investment threshold of INR 50 lakhs, targeted at family offices, institutional investors, professional wealth managers, and high-net-worth individuals. It is the first in a pipeline of AI-native investment products that ArthAlpha plans to bring to market over the next 12 months.