The provider of big data analytics to financial institutions RavenPack just launched a new portfolio ranking tool based on sentiment factors. The new tool provides on-demand ranking of more than 50,000 companies and aims to help financial professionals build stronger portfolios.
Users will now be able to create lists of positive or negative sentiment stocks for short or long term investment horizons. In addition to this, they will also be able to filter out companies experiencing negative environmental, social, or governance (ESG) events, or rank high those with positive earnings and product sentiment.
Armando Gonzalez, RavenPack
We have built a ranking system that is based on persistent and robust factors from non- traditional sources,” said Armando Gonzalez, CEO of RavenPack. “Research from RavenPack’s award-winning Data Science team shows our new tool can help investors quickly identify positive sentiment stocks, which have a higher tendency to outperform the market, while weeding out negative stocks with low expected return from their portfolios.
We’ve reached Armando for more details on the new launch, and here’s what he exclusively shared with LeapRate:
LR: Hi, Armando, and thank you for joining Leaprate today. Tell our readers a bit more about the company and the people behind it.
Armando: RavenPack is the leading Big Data analytics provider in financial services. Our products enable clients to enhance returns, reduce risk or increase efficiency by incorporating the effects of Big Data into their models or workflows. Over 200 studies published from organizations including J.P. Morgan, Deutsche Bank, Credit Suisse, and MIT, demonstrate the value of RavenPack data across all asset classes. Clients include the most successful hedge funds, banks, and Asset Managers in the world.
LR: You’ve just launched a new tool. What’s so special about it?
Armando: The new RavenPack tool allows Investment Managers to create and rank stock portfolios using event and sentiment data. It helps them identify securities that are likely to suffer from short squeezes or reversals. Fundamental Managers can systematically identify portfolio exposures to headline risk and public disclosures without the need for a Data Scientist or “Quant”.
LR: Do explain why the use of Big Data is so important in 2019?
Armando: According to NewVantage Partners, 97% of C-level executives say their companies are investing, building, or launching Big Data & AI initiatives. Why? Because all financial firms are seeking new and creative ways of gaining an informational edge over their competitors to achieve investment and operational alpha. The sell-side needs technology to trim costs and to be more operationally efficient. The buy-side of the market is constantly looking for new methods to generate alpha as fundamental data like earnings and macroeconomic indicators have been mostly arbitraged away.
LR: How do you see RavenPack setting itself apart from the crowd?
Armando: We have innovation in our DNA and are constantly developing new tools and techniques on top of our world class data. This approach enables clients to leverage our information in new and unique ways. All our services are SaaS and delivered via API or business user interfaces, which makes consuming Big Data appealing to both Data Scientists and business users. We support the “Quantamental Convergence” as fundamental interest in data-driven investing grows.
LR: What can we expect from RavenPack going forward?
Armando: We believe there is hidden and untapped value in a company’s own internal content. For example, the information gathered by Asset Managers from their contacts and relationships can generate alpha. This internal content tends to be differentiated from what is available in the public domain. We find a firm’s digital assets (emails, notes, research, news, etc.) can be systematically analyzed to extract alpha. Therefore, we are starting to license out our technology across institutions to help them extract more value from their own digital assets.