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.
- Tight Budget: The had a limited budget to support the investment team.
- 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.
- 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 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.
- 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.
- EDS was more affordable, easy-to-use and more flexible than competitive solutions.
- 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 and Risk Management.
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
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