Neuravest Research, a provider of AI-driven model portfolio solutions for institutional investors, announced the launch of its Data Refinery™, a strategic partnership program that brings together an elite group of alt data providers with empirically proven predictive qualities to drive successful investment strategies.
Using Neuravest’s award winning data analytics platform, potential Data Refinery partners go through an exhaustive evaluation and vetting process to uncover their ability to consistently generate alpha. From there, Neuravest employs machine learning to construct investment strategies that can be backtested and further validated in perpetual trading market simulations. Once empirical evidence of a data set’s value has been confirmed, Neuravest can quickly bring the investment model to market via either a specialized thematic portfolio, included in a multi-strat fund, or a bespoke portfolio that meets a fund manager’s specific needs.
“Active fund managers realize that to deliver performance that can beat their benchmarks, they can no longer simply rely on the same fundamental research that is widely available to all investors,” explained Erez Katz, Neuravest co-founder and CEO. “At the same time, they understand the enormous undertaking in building out their own data science and AI capabilities. Through our Data Refinery, Neuravest does the heavy lifting for them. We select only proven data that our analysis shows can consistently deliver value. From there, we implement market-ready investment portfolios that can be used as stand-alone strategies or incorporated into a broader investment paradigm.”
While there are more than 1,000 alternative data providers available in today’s market, Neuravest’s Data Refinery focuses on what the firm found to be “best-in-class” providers of each specific data set. To date, Neuravest has identified 42 providers, including: Benzinga, Equifax, Wall Street Horizon, OWL Analytics, New Constructs, Pynk, and many others.
Through the Data Refinery, data partners gain a direct distribution channel to asset management firms that would normally not be direct clients since they lack the resources, and know-how to consume and analyze raw data. In addition, the data providers receive Neuravest’s unbiased validation reports, which include white papers, technical and marketing presentations, defensible backtests, and perpetual access to a perpetually traded model portfolio that showcases their data in a live scenario. Data providers also participate in revenue sharing opportunities built on portfolio adoption and usage.
“We are pleased to be selected as a premier Neuravest Research Data Refinery partner,” said Barry L. Star, CEO of Wall Street Horizon. “It is critical for institutional investors to experience firsthand how event data like earnings date revisions can affect volatility within their portfolios. By accessing Wall Street Horizon event data on the Neuravest platform, investors can see its influence on alpha generation and how it impacts risk strategies as well.”
Environmental, social, and governance (ESG) factors have become increasingly consequential to how the world’s largest investors allocate capital and construct portfolios. Managers need a sophisticated and easy-to-use tool that identifies, monitors, and takes advantage of the risks and opportunities that ESG presents to their investment strategies,” said Benjamin Webster, CEO at Owl Analytics. “The OWL ESG Scores provide objective ESG ratings that are updated frequently for almost 30,000 global publicly listed companies. The Neuravest platform is an ideal tool to unlock the value of the OWL Scores so that managers can avoid risk and generate alpha from ESG."
Neuravest’s Data Refinery partners represent a dynamic list that will continue to evolve as existing alternative data sets become disseminated and new ones enter the market. “In many ways, data is like oil that feeds into the machine learning combustion engine. Yet, in other ways, some data is like uranium. It’s informational value decays over time as the market discounts it,” said Eric Davidson, Neuravest’s Executive Vice President of Strategic Partnerships. “It is imperative that the Data Refinery continuously evolves and is populated only with the most valuable and predictive data sets available.”
Source: Neuravest