“Data doesn’t exist, it’s the insights and actions that do.”

 

- Ken Cukier, author of “Big Data”

Frequently asked questions

We have a Quant, what benefit is it to also have EDS


At EDS we believe its not the platform itself, but the decisions it enables that are important. That's why we take software development seriousely and leave the insights to your data science team - they spend less time (and resources) building software, and more time communicating the insights that drive performance for the investment team.




Is EDS for long-term or short-term investors


The answer is both - and we have both types of clients. Whether you are focused on that next quarter or focused 3-5 years out, EDS provides the insights to help you make the right decision.




How will EDS change or disrupt my investment strategy


EDS does not replace an existing process or approach. You still have to do the same work, but now you will just be open to a world of more powerful analysis that you probably didn't have the tools for before. The EDS Analytics Platform empowers users to define and quantify their intuitive investment approach, by integrating all of your data - internal, alternative, and fundamental data in one consistent, insightful and actionable process. It sounds buzz wordy, but its' true.




Can I upload my own data


Yes, EDS is built around the concept of integrating all your data - market data, alternative data, and importantly, data you create such as measurements of confidence in management, takeout probability of shorts, levels of passive ownership, amount of crowdedness among holders, and macro/Fx sensitivity etc. Now you will have a formal way to integrate any creative measure you come up with into your process.




Will EDS take more time


No, you should actually achieve sharper insight in less time using EDS. We aim to free up your time!




Can't I do this using Bloomberg and Excel


That would be like using a candle instead of a light bulb or a yellow legal pad instead of CRM software. But seriously, existing platforms are decades old and were never meant to scale to the needs of today's complex and data-driven world. Companies, such as Salesforce.com, Workday, Anaplan and now EDS are successful becasue they take users out of Excel and into a platform that is customized to your business and radically improves productivity and performance.




Do I need to know statistics to understand what you are talking about


The beauty of EDS is that we are like your personal data scientist, who runs all the statistics for you and just gives you the answers and insights. For clients that want to get really deep, we can offer a dedicated data scientist whom you work with directly.




How much time does it take to learn the EDS platform


EDS is productive out-of-the-box, because it is configured for your firm.




Can I try it out before buying


At EDS, our goal is quick time-to-value. We offer a 1 - 3 month Proof-of-Concept (POC) that meets your needs without a long term commitment.




Is it expensive


If you win, we win, but the price has to be right - We sell the platform on a per seat basis and the more team members that use it, the lower the price. Our pricing starts at $25k, which is a fraction of the cost to build out your own quant team. Importantly, we integrate several single point software solutions into the platform and increasingly our clients are able to free up funds as they pare down other vendors.




Would my data and analysis be private


Yes, each client has their own "sandbox" where their portfolios, custom features and analysis reside. We have undergone many security reviews, including the AITEC-AIMA Cyber Security Review Process.




Why doesn't every fund buy the platform


The only real push back we get is from internal tech teams that contemplate building a platform themselves. But this takes years and literally millions of dollars. EDS has been iterated on within major buy side funds for several years and was actually commercialized out of one of these efforts.




Who is the platform designed for


EDS was architected to address the key workflows of a fund - from efficient idea generation to smart valuation to portfolio construction, portfolio management and event preparation. So we appeal to the analyst, data scientist/quant, PM, and CRO. Interestingly, we have been told that marketing folks use screen shots for investor correspondence frequently and talk about the impact of the platform across the firm in many of their meetings.




What are a few of the insights EDS can provide on the fly...


  • What financial metric correlates most closely with stock price on a historical basis?
  • How do I know what is the appropriate market multiple relative to the market that I should use for my price target?
  • How can I quantify my intuitive investment approach and add alt data inputs into the mix?
  • Are short interest changes a statistically significant signal to future price changes?
  • Is insider buying/selling a statistically significant signal to future price changes?
  • What macro factors are my stocks or portfolio tied to?
  • What are my alternative data sets indicating about my stock?
  • At what valuations do companies in a sector or across the market trade, with similar financial metrics?
  • What is the correct price target based on my financial metric assumptions?
  • How should positions in my portfolio be sized based on these price targets?
  • What 3 trades could I make in my current portfolio to decrease my factor exposure to Growth?
  • How has the stock historically reacted after reporting, with a price run up into the quarter?
  • How has ownership been changing versus a list of funds curated by investment type





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