Institute Offers Preventive Medicine for Hedge Fund Collapse
Research Triangle Park, NC—(October 12, 1998)— The Institute for Financial Technology (IFT) has the preventive medicine that will stop a repeat of the recent collapses in hedge funds and the resulting chaos in global financial markets. Steven M. Rideout, Managing Director of the IFT, says the preventive medicine for the current dilemma is a physics-based technology known as P-28, which applies gauge symmetry to financial markets for the first time. "The financial industry and the world's risk transfer markets are finally learning some hard lessons about the shortcomings of their current pricing technologies," says Mr. Rideout. "This comes as no surprise to anyone who really understands what's going on. Huge sums of money have been lost or wasted for a long time because probability models, the old technology currently used by every participant in every financial market, do not provide truly accurate pricing information. This old technology relies on volatility measurements and probability distributions to try to approximate the future. The recent collapse in hedge funds only serves to highlight the weaknesses of this outdated approach. Fortunately, something better is now available." Beliefs-Preferences Gauge Symmetry Group and Replication of Contingent Claims in a General Market Environment, a new book by Dr. Valery A. Kholodnyi, is the book that describes P-28. "Dr. Kholodnyi's book was released recently and the response has been absolutely overwhelming," says Mr. Rideout. "Both Wall Street and the scientific community want to move ahead immediately with the R&D project that will develop the engines needed to apply this technology in all markets worldwide." "We believe that the technology described in Dr. Kholodnyi's book clearly demonstrates that P-28 is one of the most important developments in the history of finance," says Mr. Rideout. "Anyone who uses these new technologies will avoid the pitfalls that engulfed the hedge funds, and will gain a substantial competitive advantage in global financial markets as well." Dr. Kholodnyi, the creator of this groundbreaking new scientific development, received his Ph.D. in Applied Mathematics from the Moscow Institute of Electronics and Mathematics in 1990. He has co-authored two other landmark books in the field of finance, Foundations of Foreign Exchange Option Symmetry (IES Press) and Foreign Exchange Option Symmetry (World Scientific Publishing Co.). Both of these books are conceptually based on Beliefs-Preferences Gauge Symmetry Group and Replication of Contingent Claims in a General Market Environment. Dr. Kholodnyi has also authored or co-authored over 60 research papers in finance, mathematics, theoretical physics and engineering. He has been an invited speaker at numerous international and national conferences, as well as at research seminars in university departments and industry. According to Mr. Rideout, P-28 completely dispenses with probability models, probability distributions, volatility measurements and conventional financial derivative pricing. P-28 uses gauge symmetry and real-time market data to accurately price options and other financial vehicles. "This is not just a new advancement on current technology," Mr. Rideout says. "P-28 is a revolutionary new technology unlike any other in the history of finance, and it will change portfolio management forever." Gauge symmetries have been responsible for such major revolutions in physics as Maxwell's theory of a classical electromagnetic field, Einstein's general theory of relativity, and the successful unified quantum field theories which unify all known interactions in nature. P-28 applies gauge symmetry to financial markets for the first time. Mr. Rideout says that the P-28 financial technology has far-reaching practical applications including:
"We expect that this new, physics-based P-28 technology will soon be used by all traders, quantitative analysts, economists, asset managers and fund managers to make risk reporting, option pricing and portfolio management far more accurate and more efficient than ever before," says Mr. Rideout.
For interviews with Steven Rideout about the P-28 technology or the book, contact Celia Rocks at 828-322-3111 or CeliaRocks@aol.com. To order the book, call 1-888-437-4979. A Web site for the IFT and its parent company, IES LC is available at www.ieslc.com.
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