Case Studies - Equity Data Science

Creating Operational “Alpha”

The Challenge:

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

The COO is the driving force of improving efficiency in the “Back Office”.
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.
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

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

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

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.

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.

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

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.

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

A simple and intuitive application that any member of the investment team could use.
Uniquely configured to their firm, including master & sub- funds and each team and individual member.
Once click analysis, including simulating portfolio changes and optimizing for exposure changes.
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.
Ability to isolate both asset selection and outside risks and returns, down to analyst and stock level.
Before the trade, they can now incorporate factors into idea generation and portfolio construction.
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