SVM Capital, LLC, announced today is making substantial progress in using Health Discovery Corporation’s (OTCBB:HDVY) sophisticated pattern recognition technology (Support Vector Machines (“SVM”)) for predicting the movements of the financial markets.

In November 2008 SVM Capital began live trading with its first model utilizing SVM technology. Trading a composite of the four major stock indices (S&P 500, Dow Jones 30 Industrials, the Nasdaq 100 and the Russell 2000), the broad market experienced a four-month decline of 23% through the end of February 2009. Beginning in March 2009, the broad markets rallied through December 2009.

During the four-month period (November 2008-February 2009) when the markets and the four indices were down 23% in the value, SVM Capital declined only 7.6%, outperforming the market by 15.4%. The SVM algorithm correctly predicted market downturns, which prompted SVM Capital to either hedge its risk or increase its cash position.

During the subsequent 10-month market rally in 2009, the composite indices made an impressive 55% gain. Meanwhile, SVM Capital gained 26%. For the entire 14-month period (November 2008-December 2009, inclusive) the composite indices gained 19%, while SVM Capital gained 16%, with much less risk.

“It’s worth noting that while the four composite indices outperformed SVM Capital by 3% during the 14-month period, SVM Capital’s gain of 16% was achieved with far less risk,” said Mark A. Moore, Ph.D., Chairman, SVM Capital, LLC.

“We are pleased with these risk-adjusted results and lower risk is very important to today’s investors,” said Dr. Moore.

New Improvements to Trading Model Underway

SVM Capital continues to incorporate additional equity markets data in order to improve the initial trading model. A more robust model is expected to be trading live in the near future. This new model takes advantage of the addition of information to our data base and demonstrates again the capacity of SVM to deliver improved results while adding information. The new model has also demonstrated the capacity to perform well during periods of very strong market rallies such as we have seen in 2009. For the period of live trading from November 2008 to December 2009, the new model outperformed the composite four indices by a small margin. The composite of the four indices was up a total of 19% while our new SVM model was up over 20%, with lower risk. Again, the new SVM model outperformed the indices with lower risk.

“SVM Capital represents an excellent non-healthcare opportunity for Health Discovery Corporation to generate new revenue,” said Stephen D. Barnhill, M.D., Chairman and CEO of Health Discovery Corporation. “We are impressed and pleased with Dr. Moore’s progress to date,” said Dr. Barnhill. As a part-owner, Health Discovery Corporation will receive revenue through a revenue sharing arrangement with SVM Capital.

About Health Discovery Corporation

Health Discovery Corporation is a molecular diagnostics company that uses advanced mathematical techniques to analyze large amounts of data to uncover patterns that might otherwise be undetectable. It operates primarily in the emerging field of personalized medicine where such tools are critical to scientific discovery. Its primary business consists of licensing its intellectual property and developing its own product line of biomarker-based diagnostic tests that include human genes and genetic variations, as well as gene, protein, and metabolic expression differences and image analysis in digital pathology and radiology. For more information, see

About SVM Capital, LLC

SVM Capital, LLC is a joint venture between Health Discovery Corporation and Atlantic-Alpha Strategies (Atlantic-Alpha). Atlantic Alpha was founded in 2006 to manage a fully-hedged equity arbitrage fund based on Dr. Mark Moore’s proprietary pairs trading program. This in turn is the culmination of his particular expertise in developing specialized logic structures for value decisions in financial markets. He was a General Partner (1988-1992) of Millennium Partners Hedge Fund, an $11 billion global hedge fund. Dr. Moore's career has been focused on quantitative approaches for a variety of investment vehicles in the options, commodities, equities and debt markets. For more information contact Hayes Miller, CEO at

Forward-Looking Statements

This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, the accuracy of which is necessarily subject to risks and uncertainties, including, without limitation, statements regarding future performance, opportunities and investments, and anticipated results in general. From time to time Health Discovery Corporation and SVM Capital LLC may make other forward-looking statements relation to other matters, including without limitation, commercialization plans and strategic partnerships. Actual results may differ materially due to a variety of factors, including, among other things, the acceptance of our approach to applying mathematics computer science and physics into the disciplines of biology, organic chemistry and medicine and our products and technologies associated with those approaches, the ability to develop and commercialize new drugs, therapies or other products based on our approaches, and other factors set forth from time to time in the Company’s Securities and Exchange Commission filings.

All forward-looking statements and cautionary statements included in this document are made as of the date hereof based on information available to Health Discovery Corporation and SVM Capital LLC as of the date hereof, and Health Discovery Corporation and SVM Capital, LLC assume no obligation to update any forward-looking statement or cautionary statement.

Neither Health Discovery Corporation nor SVM Capital, LLC provides legal, tax, investment or accounting advice and all investors should consult their own advisors regarding any potential investment or strategy.

The information in this press release is provided for informational purposes only and is not a solicitation. The trading models referred to in this press release relies on assumptions and there can be no assurance that the performance described can or will be achieved.

Copyright Business Wire 2010