Vancouver-based Canaccord Genuity Group Inc. has made a strategic investment in Castle Ridge Asset Management Ltd., a Toronto-based firm that uses a proprietary artificial intelligence (AI) system to offer hedge fund investment strategies.

Castle Ridge says in a release that it plans to use the investment to expand its distribution channel with Canaccord Genuity Wealth Management, which has more than $60 billion in client assets under management in Canada, the U.K., Europe and Australia.

Castle Ridge says it is in the process of rolling out a full range of investment funds aimed at high net-worth, family-office, institutional, pension plan and sovereign wealth fund clients. The firm says its AI platform uses “geno-synthetic algorithms” to adapt to changing market conditions.

“What really sets the system apart is the ability to spot market behavioural patterns that are hidden to human managers and traditional static systematic strategies,” Alex Bogdan, Castle Ridge’s chief scientific officer, says in the release.