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Interpreting Alternative Data in Novel Ways Using AI

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Sep 26, 2018 12:38:00 PM

Why Analysts Shouldn’t Fear Wall Street’s New AI Toys

In the Pixar film Toy Story, Woody – the favorite toy – worries he’ll be replaced by a flashy new toy in the form of Buzz Lightyear. But after Buzz’s ‘bells and whistles’ help save the day, Woody comes to embrace his presence in the toy hierarchy rather than feel threatened by it. As technology continues to evolve at a breakneck pace, financial analysts are fast becoming ‘Woodys’ in their own right. Once the favorite sons of Wall Street banks and investment firms, analysts are now in fear of being replaced by the newest, flashiest toy on the market: AI.

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Sep 23, 2018 12:33:00 PM

Things To Do In Sydney for Sibos 2018: An Alternative Guide

Sibos 2018 is the global financial services networking event of the year and connects more than 8,000 financial professionals from across the industry. This is the third time it has been hosted in Sydney, Australia and it is the perfect setting for Sibos to turn 40. For those who are traveling to the event and have some spare time, we have put together an alternative guide to Sydney for you.

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Sep 19, 2018 12:00:00 PM

From Black Box to Glass Box

How Transparency in AI Reporting Builds Long-Term Trust - Any relationship expert will tell you that the secret to a long-lasting relationship is trust. Without it, the two parties simply can’t function effectively. And how does one build trust? The answer is through open and direct communication. From a professional perspective, to earn trust from an employer, an employee must admit mistakes honestly and learn from them. It is no different when employing an AI to scale human expertise.

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Aug 22, 2018 5:50:00 PM

How unconscious bias leads to underperformance, and what investors can do about it!

In December 2016, The Economist studied equity analyst ratings for all stocks in the S&P 500 index. According to the study, 49% of the ratings were "buy/outperform,” and 45% were "hold/neutral." Only 6% of all ratings for the S&P 500 in 2016 were "sell/underperform.” Yet during that same year, nearly half of all S&P 500 stocks underperformed the market index, and a full 30% were in the red.

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Aug 17, 2018 8:45:00 PM

Mergers and Acquisitions Growth in July

M&A activity has continued strong into the third quarter.  With no downturn in sight, the question becomes how investors can profit from this robust M&A space. Locating credible information within the mergers and acquisitions space is no easy task. With the right strategy, mergers and acquisitions can be a remunerative space for investors and hedge fund managers. Tracking rumors surrounding companies and being aware of all chatter surrounding a company can help investors locate opportunistic trades, modify positions, and in the case of any short positions, help investors fully understand their risk.

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Aug 10, 2018 6:09:00 PM

Unstructured data: The limits of human intelligence

On September 21, 2015, at 10:56 a.m., then-candidate for President Hillary Clinton tweeted about ‘price gouging’ in the specialty drug market. By 4 p.m. that day, the entire Biotech sector had tanked. The iShares Nasdaq Biotechnology ETF (IBB) – which had skyrocketed nearly 300% over the previous five years – sunk 5% in the five hours from Clinton tweet to closing bell. The nine biggest losers on the Nasdaq 100 that day were all Biotech stocks, and the Nasdaq plunged into the red on a positive day for most other sectors.

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Aug 7, 2018 9:34:00 PM

The Diminishing Returns of Alternative Data

Not long ago, if hedge funds wanted to gauge the sales performance of a retailer like JC Penney, they would send Junior Analysts out to the stores to count cars in parking lots. This ‘channel check’ approach – and the limited insights it produced – eventually gave way to ‘Alternative Data.’ An example being satellite imagery which offers the same information (number of cars in parking lots), only in much larger, more dependable data sets. When it used to take an army of human analysts weeks or even months to accomplish, a satellite can perform in mere days.

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Aug 3, 2018 12:15:00 PM

Unstructured data: Alpha generation in the digital age

The internet is a vast repository of messy, unstructured data including blogs, chat rooms, social media posts, images, videos, etc. This repository reflects the ever changing and often irrational collective psychology of the financial markets. IBM estimates that today, as a civilization, we generate over 2.5 quintillion bytes of unstructured data per day. In fact, over 90% of the world's data has been generated in the last few years according to IBM, and the growth rate of data generation will double by the year 2020.

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