Creating Operational “Alpha”

Creating Operational "Alpha"

Global, BlueMountain/Bridger Spin with $1B in AUM

The Challenge:

Vendor creep, ineffective solutions, compliance & data management, spiraling costs, etc.

  1. The COO is the driving force of improving efficiency in the “Back Office”.​
  2. Now, leading COOs are adding “Operational Alpha” to the “Front Office” too, as they evaluate a new generation of tools & platforms that improve business processes, consolidate vendors, and support decision-making for investment teams – helping the firm become more profitable & scalable.
  3. Fund had to manage multiple vendors, each with its own tools and limitations – the tools were not flexible to their needs and were expensive, making the role of the COO difficult, as he struggled to constantly improve business and investment processes.

The Solution: 

The EDS Decision-Support Platform & Workflow

A high performance, easy-to-use and configurable workflow solution built around their operations, investment & risk processes – implemented quickly and at a lower cost than their current solutions – consolidating vendors, streamlining processes, centralizing data, improving compliance and providing valuable efficiencies and feedback for the investment team. And all supported by a highly experienced team of former investment professionals / quantitative analysts

EDS Value

With EDS, the COO was able to drive exceptional value to the fund: 

  1. Significantly reduced vendor count with a long-term goal to reduce it to one vendor.
  2. Saved fund money (over six-figures), while providing a higher performing and more configurable solution to the operation and investment teams.
  3. Improved compliance processes by centralizing their investment data in an easy-to-use, high performance platform with rapid search capabilities.
  4. Identified additional areas of possible synergies, including portfolio construction and performance attribution.

EDS Provides

Improved Performance

EDS helps you measure and improve your investment process – making it easy to analyze where your team succeeds and where the blind spots are.

Keeps all Intellectual Property (IP) in-house.

Creates accountability & transparency within the investment team

Efficiency & Automation

Streamlined what had required multiple applications, vendors and manual processes into one integrated system across Idea Generation, Portfolio Construction and Risk Management.

Aggregated all data (including codifying internal intelligence) into one platform, making evaluating the data and ideas much easier and faster.

Lower Costs

Consolidating into one vendor and system reduced HF’s overhead.

HF did not have to hire additional personnel.

Leading Providers and Funds rely on EDS​

Our partners include Northern Trust, Factset and MSCI. Our customers include leading Hedge Funds and Asset Managers, including marquee Tiger Cubs, Citadel Spins, Point72 Alums, as well as Former Maverick, Viking and Bernstein Teams. All are available as references.

What our clients have to say about EDS

Hear their success stories in their own words

EDS is revolutionizing proactive, thoughtful investment managers looking to leverage technology as a scalable tailwind in their proprietary process, it is like Salesforce.com or ServiceNow for investors.
Jon Neitzell
Anduril Partners
With the EDS Platform, our deep fundamental process is centralized and measurable - like having our investment team together 24/7, making sure our portfolio always represents our best and highest conviction ideas.
Brian Gonick
CIO, Senvest Management
We are excited about the announcement between two of our trusted partners, Equity Data Science (EDS) and Northern Trust, EDS has helped us build additional insight into our investment process, while we have long valued Northern Trust’s support as we grow our business.
Brian Mann
Principal, Pzena Investments
MSCI Factor content, now available through the EDS Analytics Platform, can transform time-consuming tasks into readily available actionable insights.
John Regino
Executive Director, MSCI
No question. EDS has helped us create increased alpha and stronger discipline.
Steve Galbraith
Kindred Capital
EDS does many things, but for me, the valuation tools are amazing! Snapshot on key metrics for any company and its comps. Saves me hours of work each time I use it.
Barry Haimes
Sage Asset Management

Integrating Risk Management into the Investment Process

Integrating Risk Management into the Investment Process

Global, Market Neutral, Tiger/SAC Spin with $8B in AUM

The Challenge:

Proactive risk management for fundamental investors.

Managing an active/neutral fund is much more than pairing longs and shorts, it is also about understanding (and adjusting if needed) where your risk/return is coming from (both known and unknown). For example, how much of our returns are based on asset selection (alpha) versus other market factors, such as momentum, growth and other factors. Solving these challenges today typically takes dedicated (and expensive) personnel and in many cases, it is still very difficult to integrate into the fundamental investment process or is not timely enough. ​

The Solution: 

The EDS Decision-Support Platform

A high performance, easy-to-use and configurable workflow solution built around their investment & risk processes – implemented quickly and affordably – streamlining/eliminating excel processes, centralizing data, providing valuable feedback, and supported by a highly experienced team of former investment professionals / quantitative analysts.

EDS Value

Client Speak

With EDS, usability and the value of their MSCI data from skyrocketed, based on:​​

  1. ​A simple and intuitive application that any member of the investment team could use.
  2. Uniquely configured to their firm, including master & sub- funds and each team and individual member.
  3. Once click analysis, including simulating portfolio changes and optimizing for exposure changes.
  4. The Head Trader can identify multiple risk, factor, return and exposure changes across any time-series in a few clicks, helping the investment team gain valuable and actionable insights in real-time.
  5. Ability to isolate both asset selection and outside risks and returns, down to analyst and stock level.
  6. Before the trade, they can now incorporate factors into idea generation and portfolio construction.
  7. Performance attribution across the team has been improved

MSCI Factor content, now available through the EDS Analytics Platform, can transform time-consuming tasks into readily available insights.”

– John Regino, MSCI Executive Director

EDS Provides

Improved Performance

EDS helps you measure and improve your investment process – making it easy to analyze where your team succeeds and where the blind spots are.

Keeps all Intellectual Property (IP) in-house.

Creates accountability & transparency within the investment team

Efficiency & Automation

Streamlined what had required multiple applications, vendors and manual processes into one integrated system across Idea Generation, Portfolio Construction and Risk Management.

Aggregated all data (including codifying internal intelligence) into one platform, making evaluating the data and ideas much easier and faster.

Lower Costs

Consolidating into one vendor and system reduced HF’s overhead.

HF did not have to hire additional personnel.

Leading Providers and Funds rely on EDS​

Our partners include Northern Trust, Factset and MSCI. Our customers include leading Hedge Funds and Asset Managers, including marquee Tiger Cubs, Citadel Spins, Point72 Alums, as well as Former Maverick, Viking and Bernstein Teams. All are available as references.

What our clients have to say about EDS

Hear their success stories in their own words

EDS is revolutionizing proactive, thoughtful investment managers looking to leverage technology as a scalable tailwind in their proprietary process, it is like Salesforce.com or ServiceNow for investors.
Jon Neitzell
Anduril Partners
With the EDS Platform, our deep fundamental process is centralized and measurable - like having our investment team together 24/7, making sure our portfolio always represents our best and highest conviction ideas.
Brian Gonick
CIO, Senvest Management
We are excited about the announcement between two of our trusted partners, Equity Data Science (EDS) and Northern Trust, EDS has helped us build additional insight into our investment process, while we have long valued Northern Trust’s support as we grow our business.
Brian Mann
Principal, Pzena Investments
MSCI Factor content, now available through the EDS Analytics Platform, can transform time-consuming tasks into readily available actionable insights.
John Regino
Executive Director, MSCI
No question. EDS has helped us create increased alpha and stronger discipline.
Steve Galbraith
Kindred Capital
EDS does many things, but for me, the valuation tools are amazing! Snapshot on key metrics for any company and its comps. Saves me hours of work each time I use it.
Barry Haimes
Sage Asset Management

Process & Productivity Driving Continuous Improvement

Process & Productivity Driving Continuous Improvement

Global Asset Manager, Value Fund, $52BM in AUM

Senior Portfolio Manager of a global asset manager searches for a solution to replace internal processes for portfolio construction & risk management that was spread across outdated systems, excel, email and pdfs; lacking the ability to do any historical analysis.

The Challenge:

Centralization and Learning from History.

The Investment team needed a way to analyze portfolio decisions historically and help them understand what MSCI /Barra factors were driving portfolio performance. Their internal process for proposing position sizes or new positions in the portfolio had become cumbersome to manage leading to wasted time by senior portfolio managers trying to troubleshoot excel instead of researching stocks. In addition, they lacked the ability to derive any insights from past portfolio decisions – they were sitting on mounds of data with no ability to analyze it. .

The Solution: 

The EDS Decision-Support Platform

EDS implemented a scalable solution that now allows senior portfolio managers to view portfolio decisions historically and easily share portfolio position sizing ideas across the entire team. 

EDS Value

The portfolio managers are now able to leverage powerful technology to improve their probability of success by analyzing their past investment decisions. Previously this data was trapped in excel, email and pdfs not yielding any analysis or results. After completing this project the portfolio managers were so impressed with the dedicated client quant team they wanted to know how they could improve their analysis of ESG data through EDS’ ESG offerings.

EDS Provides

Improved Performance

EDS helps you measure and improve your investment process – making it easy to analyze where your team succeeds and where the blind spots are.

Keeps all Intellectual Property (IP) in-house.

Creates accountability & transparency within the investment team

Efficiency & Automation

Streamlined what had required multiple applications, vendors and manual processes into one integrated system across Idea Generation, Portfolio Construction and Risk Management.

Aggregated all data (including codifying internal intelligence) into one platform, making evaluating the data and ideas much easier and faster.

Lower Costs

Consolidating into one vendor and system reduced HF’s overhead.

HF did not have to hire additional personnel.

Why EDS?

Leading Providers and Funds rely on EDS

Our customers include leading Hedge Funds & Asset Managers, including marquee Tiger Cubs, Citadel Spins, Point72 Alums, as well as Former Maverick, Viking & Bernstein Teams. All are available as references. 

What do our clients have to say about EDS?

Hear their success stories in their own words!

EDS is revolutionizing proactive, thoughtful investment managers looking to leverage technology as a scalable tailwind in their proprietary process, it is like Salesforce.com or ServiceNow for investors.
Jon Neitzell
Anduril Partners
With the EDS Platform, our deep fundamental process is centralized and measurable - like having our investment team together 24/7, making sure our portfolio always represents our best and highest conviction ideas.
Brian Gonick
CIO, Senvest Management
We are excited about the announcement between two of our trusted partners, Equity Data Science (EDS) and Northern Trust, EDS has helped us build additional insight into our investment process, while we have long valued Northern Trust’s support as we grow our business.
Brian Mann
Principal, Pzena Investments.
MSCI Factor content, now available through the EDS Analytics Platform, can transform time-consuming tasks into readily available actionable insights.
John Regino
MSCI, Executive Director
No question. EDS has helped us create increased alpha and stronger discipline.
Steve Galbraith
Kindred Capital
EDS does many things, but for me, the valuation tools are amazing! Snapshot on key metrics for any company and its comps. Saves me hours of work each time I use it.
Barry Haimes
Sage Asset Management

Process & Productivity: Institutionalizing Portfolio Decisions

Process and Productivity: Institutionalizing Portfolio Decisions

Global Asset Manager, Value Fund, $52B in AUM

As the former #1 Institutional Investor (II) ranked Chief Investment Officer at Morgan Stanley, Steve Galbraith made his career espousing the value of combining quantitative and fundamental philosophies. But when he left Maverick Capital to create Herring Creek Capital, he left behind one of the most efficient, effective, expensive and technologically rich environments on Wall Street.

The Challenge:

Institutionalizing portfolio decisions.

  1. Tight Budget: The had a limited budget to support the investment team.
  2. Emphasize Differentiation: To compete with bigger teams, they wanted to emphasize the strong collaborative nature of their small team and investment process (we are better and can do more), but current processes were fragmented & siloed – financial models, notes and emails were in multiple locations and strong collaboration was difficult to to prove to investors.
  3. Maximize Efficiency: As a small team, they wanted to be tech-forward – they had to organize their investment process, monitor their intelligence, and take action much better than funds with greater resources, but were concerned about changing their process, as no commercial solution could be configured to their specific requirements.

The Solution: 

The EDS Decision-Support Platform

A formal, measurable process that aligns investment decisions with conviction and return, significant time savings without having to re-engineer institutional processes, and a feedback loop to promote continuous improvement.

  1. Centralized workflows and data in an intelligent platform that could rapidly assess their current portfolio, streamline research processes, and analyze past decision & inputs to drive continuous improvements.
  2. EDS was more affordable, easy-to-use and more flexible than competitive solutions.
  3. Configured to their specific requirements/workflows: Comprehensive dashboards that integrate information from across sources, coupled with a digital, systematic process – built to mirror the process already in place across Idea Generation, Portfolio Construction & Risk Management

EDS Value

Client Speak

Since we implemented some quantitative changes in tracking expectations around quarterly earnings, cumulatively we have added almost 800 basis points of alpha in our short security selection.

No question. EDS has helped us create increased alpha and stronger discipline.

– Steve Galbraith, Chief Investment Officer (CIO) of Herring Creek / Kindred Capital

EDS Provides

Improved Performance

EDS helps you measure and improve your investment process – making it easy to analyze where your team succeeds and where the blind spots are.

Keeps all Intellectual Property (IP) in-house.

Creates accountability & transparency within the investment team

Efficiency & Automation

Streamlined what had required multiple applications, vendors and manual processes into one integrated system across Idea Generation, Portfolio Construction and Risk Management.

Aggregated all data (including codifying internal intelligence) into one platform, making evaluating the data and ideas much easier and faster.

Lower Costs

Consolidating into one vendor and system reduced HF’s overhead.

HF did not have to hire additional personnel.

Leading Providers and Funds rely on EDS​

Our partners include Northern Trust, Factset and MSCI. Our customers include leading Hedge Funds and Asset Managers, including marquee Tiger Cubs, Citadel Spins, Point72 Alums, as well as Former Maverick, Viking and Bernstein Teams. All are available as references.

What our clients have to say about EDS

Hear their success stories in their own words

EDS is revolutionizing proactive, thoughtful investment managers looking to leverage technology as a scalable tailwind in their proprietary process, it is like Salesforce.com or ServiceNow for investors.
Jon Neitzell
Anduril Partners
With the EDS Platform, our deep fundamental process is centralized and measurable - like having our investment team together 24/7, making sure our portfolio always represents our best and highest conviction ideas.
Brian Gonick
CIO, Senvest Management
We are excited about the announcement between two of our trusted partners, Equity Data Science (EDS) and Northern Trust, EDS has helped us build additional insight into our investment process, while we have long valued Northern Trust’s support as we grow our business.
Brian Mann
Principal, Pzena Investments
MSCI Factor content, now available through the EDS Analytics Platform, can transform time-consuming tasks into readily available actionable insights.
John Regino
Executive Director, MSCI
No question. EDS has helped us create increased alpha and stronger discipline.
Steve Galbraith
Kindred Capital
EDS does many things, but for me, the valuation tools are amazing! Snapshot on key metrics for any company and its comps. Saves me hours of work each time I use it.
Barry Haimes
Sage Asset Management

The six-figure decision: buy vs. build

The six-figure decision: buy vs. build

Global Hedge Fund Manager with $3.5B in AUM

The Challenge:

Making what we do repeatable – a data-driven solution, that doesn’t change who you are.

  1. Infrastructure to support their investment team is fragmented/siloed – excel, word and email files are spread out
  2. An investment process built on Excel, which lacks the ability to analyze past inputs & decisions.
  3. Want a system to aggregate all internal intelligence (models, notes & any other data). Also needs to be searchable and fast.
  4. The want “best practices” compliance; a system that stores investment ideas and price targets historically.
  5. CIO sought to hire a data scientist/team that could build a scalable solution around their investment process.
  6. Concerns about the cost, commitment and transition process were front and center.

The Solution: 

The EDS Decision-Support Platform

A high performance, easy-to-use and configurable workflow solution built around their investment process – implemented quickly and affordably – streamlining/eliminating excel processes, providing valuable feedback, and supported by a highly experienced team of former investment professionals/ quantitative analysts.

  1. Connected to existing /migrated excel processes to an intelligent platform that could analyze past decision & inputs.
  2. Started with a proof of concept (POC) that required minimal commitment from the client and proved the value upfront.
  3. EDS was more affordable, easy-to-use and more flexible than competitive solutions.
  4. HF started with a small team, but now is rolled out across their entire team, optimizing all data sources, automating workflows, and ranking the universe according to their process (keeping garbage out of the portfolio).
  5. EDS has replaced other internal solutions, saving additional costs.

EDS Value

Client Speak

EDS is like a real-time investment committee.

With the EDS Platform, our deep fundamental process is centralized and measurable – like having our investment team together 24/7, making sure our portfolio always represents our best and highest conviction ideas.

– Fund Chief Investment Officer

EDS Provides

Improved Performance

EDS helps you measure and improve your investment process – making it easy to analyze where your team succeeds and where the blind spots are.

Keeps all Intellectual Property (IP) in-house.

Creates accountability & transparency within the investment team

Efficiency & Automation

Streamlined what had required multiple applications, vendors and manual processes into one integrated system across Idea Generation, Portfolio Construction and Risk Management.

Aggregated all data (including codifying internal intelligence) into one platform, making evaluating the data and ideas much easier and faster.

Lower Costs

Consolidating into one vendor and system reduced HF’s overhead.

HF did not have to hire additional personnel.

Why EDS?

Leading Providers and Funds rely on EDS

Our customers include leading Hedge Funds & Asset Managers, including marquee Tiger Cubs, Citadel Spins, Point72 Alums, as well as Former Maverick, Viking & Bernstein Teams. All are available as references. 

What do our clients have to say about EDS?

Hear their success stories in their own words!

EDS is revolutionizing proactive, thoughtful investment managers looking to leverage technology as a scalable tailwind in their proprietary process, it is like Salesforce.com or ServiceNow for investors.
Jon Neitzell
Anduril Partners
With the EDS Platform, our deep fundamental process is centralized and measurable - like having our investment team together 24/7, making sure our portfolio always represents our best and highest conviction ideas.
Brian Gonick
CIO, Senvest Management
We are excited about the announcement between two of our trusted partners, Equity Data Science (EDS) and Northern Trust, EDS has helped us build additional insight into our investment process, while we have long valued Northern Trust’s support as we grow our business.
Brian Mann
Principal, Pzena Investments.
MSCI Factor content, now available through the EDS Analytics Platform, can transform time-consuming tasks into readily available actionable insights.
John Regino
MSCI, Executive Director
No question. EDS has helped us create increased alpha and stronger discipline.
Steve Galbraith
Kindred Capital
EDS does many things, but for me, the valuation tools are amazing! Snapshot on key metrics for any company and its comps. Saves me hours of work each time I use it.
Barry Haimes
Sage Asset Management