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Milwaukee hedge fund raises $4.3 million for quantitative high frequency trading initiatives

Reported by Biztimes
Apr 24, 2026· 2 min read
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Key Takeaways
  • • Verma Research Capital closed a $4.3 million funding round to expand quantitative high-frequency trading and long-term equity investment capabilities, with disclosed individual investments ranging from $200,000 to $600,000.
  • • VRC operates a dual-model strategy: a short-term quantitative trading book generating realized monthly returns and a long-term equity book compounding wealth over years, with profits from short-term trading reinvested into long-term initiatives.
  • • The firm's performance exceeds U.S. hedge fund industry benchmarks according to first-quarter results, positioning it competitively within a mature market segment.
  • • Founder Divyanshu Verma, a University of Wisconsin-Milwaukee computer science graduate with prior experience at Chicago-based Akuna Capital, launched VRC in 2025 and will be recognized as an emerging entrepreneur in the hedge fund category at the Silicon Valley Economic Forum in May.
  • • Lead investors include International Systems Technologies (Philadelphia) and Pitch Global (San Francisco), reflecting geographic diversification of the firm's capital base.
Summary
Verma Research Capital, a Milwaukee-based hedge fund founded in 2025, has successfully closed a $4.3 million funding round targeting expansion of its quantitative high-frequency trading operations and long-term equity investments. According to founder Divyanshu Verma, the capital will support existing clients and fund new investments across both short- and long-term equity strategies.

The firm employs a bifurcated operating model designed to balance immediate income generation with sustained wealth compounding. VRC's short-term quantitative trading book utilizes derivatives, algorithmic trading, and data-driven market analysis to generate realized monthly returns, while its long-term equity book focuses on value investing to build wealth over extended periods. Profitability from the quantitative model is channeled into long-term initiatives, creating an integrated capital deployment strategy. According to VRC's first-quarter reporting, this dual-pronged approach outperforms the broader U.S. hedge fund industry benchmark.

The funding round attracted capital from multiple private sources nationwide. International Systems Technologies, based in Philadelphia, and Pitch Global, headquartered in San Francisco, led disclosed investments ranging from $200,000 to $600,000 per investor. This geographic diversity suggests institutional confidence in VRC's operational model and market positioning.

Verma's professional trajectory reflects deep technical expertise and practical trading experience. He holds a Master of Computer Science degree from the University of Wisconsin-Milwaukee and previously worked at Akuna Capital, a Chicago-based quantitative trading firm. Prior to founding VRC, Verma managed $200,000 as portfolio manager of UWM's student investment club for two years. His emerging entrepreneur contributions to the hedge fund sector will be recognized at the Silicon Valley Economic Forum in May 2026.

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Biztimes Milwaukee hedge fund raises $4.3 million for quantitative high frequency trading initiatives