MarketPlace for Alpha Generation

Hedge funds and financial institutions have historically thrived on information that gives them an edge in the marketplace for alpha generation. They use sophisticated analytics programs to gain the ‘information edge’ by searching for revealing patterns hidden in structured data, such as spreadsheets and relational databases. But these sources only account for 20 percent of all available data. The real challenge for enterprises is getting value from a sea of social media posts, images, email, text messages, audio files, Word documents, PDFs and other sources that make up the other 80 percent of data that can’t be understood by computers—information otherwise known as unstructured data. At GPS.ai we transform messy and unstructured data into market insights. Our goal is to identify the strategic trends impacting the market space. Our AI based machine can ingest books, tweets, news reports, financial data, earnings numbers, international monetary policy—anything that might help the software understand global trends. Our AI can keep watching this up-to-the-instant data, all the time, never tiring, always learning and perfecting its predictions.

Natural Language Processing (NLP):

To extract value from unstructured data, companies across industries are turning to Natural Language Processing (NLP).

NLP enables computer programs to understand unstructured text by using machine learning and artificial intelligence to make inferences and provide context to language, just as human brains do. It is a tool for uncovering and analyzing the ‘signals’ buried in unstructured data. Companies can then gain a deeper understanding of public perception around their products, services and brand—as well as those of their competitors.

Our Sentiment- and behavioural-based signals

The financial services industry is dependent not only on information, but also on the information delivered as close to real-time as possible. To access and analyze relevant information in the rapidly expanding universe of unstructured data, financial services providers are turning to our NLP tools to help them make sound decisions.

We have seen over the years that the Sentiment- and behavioral-based signals using the content from earnings calls and other market data, have historically demonstrated additive stock selection power above and beyond the traditional strategies such as value, momentum, quality, analyst revision and earnings surprise, in the S&P 500 space.

Distill insights from all the data...

What we want to capture is people saying things about either the security itself, executives that are associated with that entity, products associated with that entity, and then ─ based on capturing those right conversation points ─ arrive at a view of sentiment that's based on what real people are saying.With the help of big data, NLP and AI technologies, we are now able to distill insights from all the data available to us from each company’s financial data, SEC filings, call transcripts, product news, employee attitudes and management changes. Our search database includes thousands of companies in the market space.

Investment managers are integrating our GPS.ai NLP tools and machine learning & deep learning capabilities into their analytics platforms to augment investment research in the following ways, among others:

Gather Real-time Intelligence on Specific Tasks

• Gather real-time intelligence on specific stocks. Writing a query creates a real-time alert if analysts upgrade or downgrade a stock, thereby offering clients a valuable trading edge.

• Monitor company sentiment. By interpreting management sentiment during earnings calls to predict a company’s future performance. Also, major news, such as an earnings report or an acquisition, affect how investors view a company, so too can the general tone of the news coverage. We track mentions of companies and discern negative or positive sentiment in news coverage.

• Anticipate client concerns. We use NLP to discover and parse customer sentiment by monitoring social media and analyzing conversations about their services and policies.

AI - Analyst Reports

• Higher quality of analyst reporting. Our AI tools can monitor vast arrays of data sources in real time, detect signals and put together analyst reports. With the ability to access relevant, filtered information, financial services analysts are able to write more detailed reports and provide better advice to clients and internal decision makers.

• Understand and respond to global and local events. We instantly scan market chatter for insights into peers, competitors, or the market, such as blogs, news reports, social media, and sentiment data to identify trends and potential investment ideas.

• Detect insider trading. We use NLP queries to track the incremental sale and purchase of insider shares that otherwise might fly under the radar.