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Deception And Truth Analysis - D.A.T.A.
PRODUCTS & USE CASES
Our Clients use Deception And Truth Analysis (D.A.T.A.) in dozens of unique ways, taking advantage of D.A.T.A.'s ability to accurately and rapidly assess text and language, which make up 98.3% of all financial data. Read below about how others are using Deception And Truth Analysis to improve their analyses.
PRODUCTS
DATAbase
DATAREDline
DATAbase
- A structured dataset of US equities' regulatory filings assessed for their level of deceptiveness and truthfulness.
- Dating back to 1Q 2008 and updated in near real time.
- Data available via API, .csv export, or on the D.A.T.A. Platform.
- Coverage of S&P 500, 400, and 600 and Russell 2000, 1000, and 3000.
- Coming soon: earnings call transcripts, S1s, DEF14s, 8(k)s, and central bank meeting minutes.
PERFECT FOR:
- Quant investors, because our DATA Scores tend to be predictive of future securities' price performance.
- Quantamental investors looking for new factors, as well as an assist at identifying key issues.
- Fundamental investors throughout the investment decision-making process.
myDATA
DATAREDline
DATAbase
- With myDATA we turn over the power of our algorithm to you so that you may assess almost any document of your choosing for its level of deceptiveness and truthfulness.
- This is the same algorithm that we use to score every document in DATAbase.
PERFECT FOR:
- Private equity investors looking to evaluate deal documents.
- Venture capitalists wanting to evaluate founders' statements.
- Real estate investors wanting to evaluate property transaction documents.
- Assessment of expert network transcripts.
- Asset owners wanting to evaluate RFPs, board books, and the like.
DATAREDline
DATAREDline
DATAREDline
- Our premium product where at a glance you can see where the deceptiveness and truthfulness is taking place, and the underlying language leading to our DATA Score assessment.
- Available for both DATAbase and myDATA.
- Simply click on the DATAREDline score and it takes you to the location in the document so that you can see the language.
PERFECT FOR:
- Any investor wanting insight into the underlying issues a company is being deceptive (or truthful) about.
- A force multiplier for harried-for-time research teams who do not have time, say during earnings season, to read every word of every filing and want to have the key issues surfaced for themselves.
USE CASES
ALPHA GENERATOR
Our Clients are able to grow assets under management the old fashioned way: by earning alpha. As discussed in our validation section of our Insights page our algorithm has demonstrated its ability to provide alpha even in the world's most covered and most liquid companies. In short, markets do seem to price deception and we hope that you are, too.
DOWNSIDE PROTECTION
As we demonstrate in our Insights section, Deception And Truth Analysis (D.A.T.A.) provided an average 6.2 year warning in identifying 9 of the top 10 of the worst corporate scandals in history. Because D.A.T.A. assesses the 98.3% of financial information that is non-numeric (i.e. text), and because language is indicative of underlying behaviors, it is a highly effective early warning system for investors, auditors, and regulators.
ESG
Of the ESG components Governance has seen the least evolution over the last 15 years. D.A.T.A. Clients are able to rapidly and accurately identify a company's potential governance issues because with extremely high accuracy are able to detect deception as well as the language associated with that deception. Check out our case study "A Powerful Weapon Against Greenwashing."
NARROWING YOUR TEAM'S FOCUS
Currently, all fundamental investors face a similar problem: in a world of shrinking expense ratios how do we best deploy our overworked, time-pressed research staff to more thoroughly and rapidly assess our investments' many regulatory filings? It is our estimate that D.A.T.A. can assess documents 350x faster and much more accurately than people. This is a force multiplier for our Client's time-strapped research teams who now can in seconds analyze financial documents and render a reliable opinion about which companies in their portfolios need their attention. This type of analysis is especially powerful as a time series where our Clients see the change in a company's D.A.T.A. score from quarter to quarter.
A SECOND OPINION ON FUNDAMENTAL ANALYSIS
Our Clients frequently have a sense of possible deception on the part of a company and its management. This insight may come from a thorough financial statement analysis or from a conversation with management. D.A.T.A. provides a scientifically-based and more-accurate-than-people evaluation of a company's deception. D.A.T.A. Clients also use our tech as a final check, and second opinion prior to purchasing a security for which all other fundamental work has been done.
whole portfolio review
Because D.A.T.A. can assess documents 350x faster than people and much more accurately our Clients gain peace of mind by conducting regular portfolio reviews to ensure their are no black sheep lurking in their midst.
INVESTMENT SCREENS
Currently, most investment managers do not have many qualitative factors in their investment screens. If they do, they are typically a guesstimate on the part of research staff. D.A.T.A. offers scientifically-based insights into the most basic of investment questions: Can I trust management and safely put this firm in my coverage universe?
