Introducing Forward Lucy

Welcome to the official Forward Lucy insights blog — a space where we’ll regularly share insights into our investment approach, how the Lucy funds are evolving, what we're seeing in the markets, and how we're improving the process over time.

We created this platform to maintain open, ongoing communication with our clients and followers. You’ll find updates on performance, positioning, model enhancements, and broader thinking behind the strategy. Transparency is one of our core values, and this blog is a key part of how we deliver on that promise.

Why Forward Lucy?

The idea behind Forward Lucy was born out of a simple observation: traditional active asset management is struggling. In many cases, it hasn’t delivered on its promise of outperformance. Even beyond returns, there’s been a broader issue of misaligned incentives, limited transparency, and often a sense that the industry benefits itself more than its clients.

Forward Lucy was created to challenge that model — both in terms of how we invest and how we treat investors.

We’ve built what we believe to be the first UCITS fund range of its kind, powered by a unique systematic investment engine and coupled with a client-first pricing and communication model. Our goal is to bring clarity, discipline, and alignment back into active management.

A New Kind of Investment Process

At the heart of Lucy lies a concept we refer to as “alpha layering.” This means we don’t rely on just one strategy or signal — instead, we combine multiple complementary components that each contribute incremental value to the portfolio.

One of the foundational elements is a machine learning technique known as clustering. Rather than grouping companies by outdated categories like sector or region, we use clustering to group stocks based on how they actually behave in the market. This leads to more meaningful diversification and better control over portfolio risk.

We then apply a rotating factor model, selecting and adjusting exposures to styles like value, quality, or momentum depending on the prevailing market environment. It’s not a fixed recipe, but a dynamic framework that adapts as conditions shift.

On top of that, we incorporate a proprietary sentiment analysis engine, which scans thousands of market texts and earnings reports to understand how investors are reacting to macroeconomic developments. These insights feed directly into our top-down allocation decisions, helping us align positioning with the tone of the market in real time.

The result is a multi-layered, data-driven process that brings together structure, adaptability, and intentional design — a model that puts active investing back on solid footing.

Putting the Client First

Of course, a strong investment engine is only half the story.

From the outset, we’ve also set out to rethink the investor experience — how fees are structured, how information is shared, and how relationships are maintained. At the centre of this is our performance-linked pricing model. If the fund doesn’t generate a positive return or beat its benchmark, our fee drops to a minimal level. In other words: we only do well when you do well.

We also provide full portfolio transparency. Investors can see every stock we hold, how we’re positioned across clusters, regions, currencies, and factor exposures. There's no black box — and no guesswork.

And finally, we value direct, honest communication. That’s why we’re writing this blog. We're not just managing assets — we're building trust through clarity and engagement. Forward Lucy may be powered by machine learning and modern data science, but it’s also grounded in human intention. That’s why we gave it a name. Lucy is here to be understood — and to connect.

Thanks for reading — and welcome to the world of Forward Lucy. You can expect regular updates here as the journey continues. Stay tuned.