April 30, 2020

EDS Integrates MSCI ESG Analytics

NEW YORK, NEW YORK, – Equity Data Science (EDS), a leader in Investment Process Infrastructure, announced a partnership, which includes the integration of MSCI’s ESG Analytics into the EDS Analytics Platform.

 

By partnering with MSCI, EDS clients can easily integrate ESG into every part of their investment process from beginning to end. Edward Allen, head of ESG Client Coverage at MSCI said, “Investors are increasingly demanding integration of ESG data into their entire investment process”. Tiffany Greenhouse, Executive Director said, “Conversations with our clients are shifting from why ESG matters to how to implement ESG to make more informed investment decisions.”

 

MSCI ESG Intelligence on the EDS Analytics Platform helps teams embed ESG directly into their entire fundamental investment process with the ability to:

 

  • Idea Generation: Integrate and optimize MSCI ESG data, alongside all of the other internal and external intelligence investors access when making critical investment decisions – ex. include ESG data directly into workflows, such as screening and ranking.

 

  • Portfolio Construction: Add ESG data as an input to EDS portfolio dashboards for optimal monitoring, position weighting & trading. Add ESG as an input in your investment conviction, alongside other inputs, such as internal estimates, price-targets, catalysts, MSCI factors, alt data, etc. EDS tracks your ESG inputs & decisions for feedback and investment process iteration.

 

  • Risk Management: Add ESG into their process - with MSCI’s leading ESG & Factors integrated into the EDS Analytics Platform, your team becomes more prepared and proactive.

About MSCI

For more than 40 years, MSCI’s research-based indexes and analytics have helped the world’s leading investors build and manage better portfolios. Clients rely on our offerings for deeper insights into the drivers of performance and risk in their portfolios, broad asset class coverage and innovative research. Our line of products and services includes indexes, analytical models, data, real estate benchmarks and ESG research. MSCI serves 99 of the top 100 largest money managers, according to the most recent P&I ranking. For more information, visit us at www.msci.com.

February 19, 2020

Kindred Capital: At the core of our investment process is Equity Data Science (EDS)

Kindred Capital 2019 Investor Letter Excerpt: At the core of our investment process is Equity Data Science (EDS), a software program which affords us enormous leverage in stock selection and in managing the Fund’s investments. 

 

Steve developed an early version of the platform while at Herring Creek, and over the last two years, together with his former colleague and partners (who created a new venture to market the software to other investment managers (for full disclosure, Steve is the largest outside investor in EDS). Over time, we have continued to fine tune and enhance the platform’s capabilities and data mining power.

 

While initially designed to augment idea generation and stock selection, the latest version of EDS now incorporates tools that help us with portfolio construction and position sizing as well. EDS filters the equity universe in multiple ways: on the basis of valuation relative to peers, relative to the market as a whole, and relative to a company’s own history. It tracks technical trends, leverage, returns, growth, market sentiment, and many other financial measures. It also estimates normalized earnings power based on historical data. Using EDS, we rank securities by quintile from 1 to 5 (best to worst) to define our opportunity set.

 

To illustrate, with EDS we rank securities using four basic criteria which have generally proven predictive of outperformance: Valuation, Capital Deployment, Earnings Quality and Momentum. Under this construct, potential long investments would typically rank as a 1 in at least the first three categories and potential shorts would rank 5. Of course there are always exceptions to the rule. Value traps whose earnings power may be permanently impaired can screen as a 1 on value (think Kodak). Conversely, a company recovering from a steep decline in earnings can look expensive (a 4 or 5) when its future earnings outlook is bright. Acquisitions score negatively on capital deployment, but can sometimes prove highly accretive or transformative and so on. In this way, EDS serves as a highly effective screening tool, whose scores we then evaluate against a deeper analysis of the company’s history and prospects.

October 08, 2019

EDS Integrates MSCI Risk and Factor Analysis

Fundamental Funds have access to MSCI’s Barra® in the EDS Analytics Platform

 

NEW YORK, NEW YORK, – Equity Data Science (EDS), a leader in Investment Process Infrastructure, announced a partnership, which includes the integration of MSCI’s Barra® real time portfolio risk and factor analysis solutions into the EDS Analytics Platform.

MSCI Inc.’s (NYSE:MSCI) industry-leading risk models help investment managers manage portfolio and market risk, enabling them to manage portfolio risk tolerance. With this partnership and integration, portfolio managers, traders and analysts, using EDS can understand risk more efficiently and better understand pro-forma risk before staging the order for trading.

Ben Lieblich, Chief Data Scientist, Equity Data Science: “Our fundamental clients, have been demanding more real-time risk and factor analytics”. Lieblich added, “What used to be static reports & difficult to use excel sheets, is now available across the entire investment lifecycle, configured to each user, from idea generation to portfolio construction and risk management in an easy-to-use platform for the entire investment team.

John Regino, Head of Product at MSCI stated: “Our world class factor and risk analytics content can now seamlessly be integrated into all investment related workflows, and importantly, is accessible to any member of the investment team. Partnering with EDS aligns with our strategy to strengthen our relationships with clients in accessing MSCI solutions for portfolio risk and factor analytics.”

Lieblich continued: “We are excited to partner with MSCI to integrate these next generation workflows into our Decision-Support and Analytics Platform. Whether a firm is factor-aware or running explicit factor-driven strategies, our platform makes it simple for any manager to integrate leading risk solutions into their investment process.

December 31, 2018

EDS Named Top 10 Portfolio Analytics Vendor

From consultation services to implementation assistance, these solution providers are constantly transforming the portfolio analytics market. Our distinguished panel comprising CEOs, CIOs, and analysts along with Capital Markets CIO Outlook’s editorial board have narrowed down the best portfolio analytics solution providers in the market

May 07, 2018

Kindred Capital Investor Letter - How One of Our Customers (and Investors) uses EDS

Steve Galbraith is the CIO of Kindred Capital, and is formerly the CIO at Morgan Stanley and a Partner at Maverick Capital. He shares his use of EDS in a recent investor letter. Below are a few excerpts.......

 

            "At the core of our investment process is Equity Data Science (EDS), a software program which affords us enormous leverage in stock selection and in managing the Fund’s investments. While initially designed to augment idea generation and stock selection, the latest version of EDS now incorporates tools that help us with portfolio construction and position sizing as well. EDS filters the equity universe in multiple ways: on the basis of valuation relative to peers, relative to the market as a whole, and relative to a company’s own history.   It tracks technical trends, leverage, returns, growth, market sentiment, and many other financial measures.  It also estimates normalized earnings power based on historical data.   EDS ranks securities on a scale of 1 to 5 (best to worst)"

 

March 07, 2018

Every week, Hedge Fund Alerts helps subscribers anticipate risks and opportunities by revealing behind-the-scenes developments in the fund-management arena. EDS is excited to be highlighted as a key vendor providing leading-edge technology to fundamental investors:

"helping fundamental investors incorporate big-data analysis without reconstituting their core investment processes  — or going to the trouble and expense of hiring data scientists and software engineers. The EDS Analytics Platform supports multiple big-data functions, including idea generation, asset valuation, position sizing and risk management. Other fintech firms aim to assist hedge funds in some of those areas, but EDS is pitching its system as the simplest and least-expensive way for equity managers to fully exploit the potential of big data.EDS has the backing of Steve Galbraith, formerly chief macroeconomic strategist at Maverick Capital and chief investment officer at Morgan Stanley. He helped oversee the formation of Maverick’s quantitative-investing program, dubbed Mavrank, and later developed a prototype of EDS’ software at Herring Creek Capital, a hedge fund firm he founded." 

 

"The fact that the founders of EDS have experience as portfolio managers could give the firm a leg up in an increasingly crowded field. One of the biggest challenges hedge fund managers face in working with big data is a communications gap between data scientists and investment professionals. Indeed, a recent report from Jefferies’ prime-brokerage group said larger fund-management firms have been hiring “translators” to bridge that gap."

September 26, 2017

The Chartered Alternative Investment Analysts Association (CAIA) has published an article, entitled "Including Investment Process Technologies within Operational Due Diligence", by Dana Lambert and Rayne Gaisford.

 

EDS is excited to be highlighted as a key vendor providing leading-edge technology to fundamental investors. The EDS mission is simple - provide a high-end investment analytics, portfolio management and risk modeling platform that provides the power of a data scientist, at a fraction of the price - no added personnel or expensive IT support, and easy-to-use and implement.  

"The EDS platform has been in development since 2013, and currently has multiple customers. Having such a comprehensive, efficient, and versatile screening and portfolio ranking tool brings data science capabilities to fundamental managers, helping them significantly increase productivity and generate alpha." - Dana Lambert, Rayne Gaisford:

These approaches to security selection, portfolio construction, analytics, and risk measurement – and the behaviors tied to them – enable much more data-centric and evidence-based practices, in many cases providing a “quantamental” overlay to a fundamental investing technique. This overlay can create the much sought-after “edge” or marginal information advantage that so many in the investment management business seek. 

June 08, 2017

J.P. Morgan recognizes Equity Data Science as a quantitative platform for fundamental investors

Marko Kolanovic and his industry-leading quantitative team at JP Morgan have published a new report entitled "Big Data and AI Strategies." This massive 280-page Big Data Handbook is one of the most comprehensive reports on Data Science and its resulting impact on fundamental investors. Equity Data Science (EDS) is pleased to be selected as one of the vendors providing the latest technology and tools to help investors compete in the rapidly evolving financial markets, including investment analytics, multi-factor portfolio analysis and risk modeling. EDS is easy-to-use, affordable and helps investors generate better performance. 

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