RISK IS DEFINED DIFFERENTLY FOR EACH INVESTOR 

Each investor looks at risk through their own lens, but most platforms define risk according to industry standards. EDS breaks free of the traditional mold to provide your team with the metrics that matter to you - while also complying to industry benchmarks, such as MSCI. With EDS, your team becomes more prepared and proactive, when it comes to risk management

 

                                                   RISK MANAGEMENT

How Clients Use EDS

  • Proactive vs. Reactive: Immediate understanding of exposure and drivers at any 

  • Trading desks are making quicker and better decisions

Customized Risk Dashboards

  • Dynamically isolate fund(s) exposure across multiple factors:

  • Asset Selection vs. Common Factors

  • Fundamental metrics vs. any benchmark

  • Configure you own universe or benchmark

  • MSCI Barra Factors (including ESG)

  • Macro or industry factors

  • Add your own "In-House" risk metrics, including alpha/beta/factor decomposition 

  • Portfolio Simulation - Create multiple scenarios, so you are ready if the market changes

  • Trading Optimizer to instantly identify securities that meet your exposure requirements

  • Configurable Attribution By team, analyst, PNL, asset selection vs. factor drivers, etc.

"What stood out to me, as I am putting this into practice with the fundamental team, is in this recent dislocation, the majority of the toolbox was not relevant, it was useless, there was no phone call you could have made to a mgt. team or no data input you could get that would explain why a stock was moving and when you should be buying or selling. But these FACTOR tools from MSCI and EDS provide a level of context , a new way of looking at things, that is historically relevant. You can get a sense for "where am I on the risk or probability spectrum."  - EDS User

 
 

SIMULATION AND OPTIMIZATION 

Become more Proactive with Decisions

 

Throughout the platform, we have woven simulation analytics into the fundamental process to give investors the ability to test any data, any factor, or any change in strategy in just a few clicks.

 

In seconds, understand the impact:

 

  • Adding a new stock, sector, fund or exposure to the portfolio

  • Stress portfolio against market forces (oil, rates, factors, etc.)

  • Create and save multiple strategies, with mock portfolios based on outcomes (higher rates, lower oil, trade tariffs)

  • Isolate changes in exposure down to the analyst or stock level across any timeframe

PORTFOLIO ANALYTICS 

Performance Attribution, Behavioral Analytics, and so much more....

 

No need for an expensive and under-equipped data warehouse, EDS provides behavioral and performance analysis that goes far beyond typical solutions - always up-to-date and fully configurable, EDS helps your team drive continuous improvement.  

 

EDS provides a holistic approach to performance attribution:

  • Include all cash activity (inflows/outflows)

  • Include position, trading & performance activity

  • Include investment decisions 

  • Include investment inputs 

  • Include internal/external data inputs

These are a just a few of the ways our clients quickly gain insight into their performance. 

  • Are trading decisions helping performance

  • How does performance change when we reduce or raise our internal earnings estimates or price targets

  • Which teams are contributing or detracting from performance and why

  • How accurate are our projections

Other solutions start after you've made the trade, and only look at the end result, not the reasons behind it. With EDS, your team captures all intelligence and helps you leverage your strengths and cure your blind spots. EDS databases and helps you analyze each decision and data point.​

 

 

WHY INCORPORATING FACTORS IS IMPORTANT FOR FUNDAMENTAL INVESTORS 

It Improves Decision-Making 

 

Leading fundamental funds are becoming more "Factor Aware", because it helps them to better understand "why" a stock is moving and "when" to take action. Current tools are not effective in today's markets. 

 

With MSCI Barra Factors integrated into EDS, you will quickly understand: 

 

  • What is driving the returns in any given period (ex. Is the stock down because of high leverage or higher because of its high profitability)

  • How much of the return is coming from your alpha vs. other factors

  • How much of your risk comes from things you don't control

  • When to take action, based on historical analytics (ex. what trends are emerging and are they relevant)

"What stood out to me, as I am putting this into practice with the fundamental team, is in this recent dislocation, the majority of the toolbox was not relevant, it was useless, there was no phone call you could have made to a mgt. team or no data input you could get that would explain why a stock was moving and when you should be buying or selling. But these FACTOR tools from MSCI and EDS provide a level of context , a new way of looking at things, that is historically relevant. You can get a sense for "where am I on the risk or probability spectrum."  - EDS User

SHORT-TERM RISK

 

Analyze and take advantage of short-term trends in:

 

  • Short interest

  • 13F Filings

  • Insider activity

  • Earnings 

These are a few of the ways our clients quickly gain insight into changing markets. 

  • Understand crowding risks

  • Signals from short interest changes

  • Recent insider activity insights

  • Configurable earnings dashboards

sales@equitydatascience.com
205 East 42nd St.,
New York, NY 10017
(646) 838-4107
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