USE CASES

Fundamental investors all face the same problem at the end of each quarter. That is, how to deploy our overworked, time-pressed research staff to begin assessing our investments' quarterly and annual reports. Deception And Truth Analysis (D.A.T.A.) can in seconds analyze financial documents and render a reliable opinion about which companies in your portfolio or investment universe deserve the attention of your research brain trust. This type of analysis is especially powerful as a time series where investors look at the change in a company's deception score from quarter to quarter.

As we demonstrate in our Research section, Deception And Truth Analysis (D.A.T.A.) provided an average 6.6 year warning in identifying all 10 of the worst corporate scandals in history. Because D.A.T.A. assesses the 86.5% 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. Deception And Truth Analysis also identified the private company Wirecard's fraud from the very first public disclosure of its performance. Again, see our Research section for more details.

Seasoned investors 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. Deception And Truth Analysis (D.A.T.A.) provides an informed, more accurate than people, evaluation of a company's deception. D.A.T.A. is also ideally used as a final check, a second opinion, prior to purchasing a security for which all other fundamental work has been done.

Because Deception And Truth Analysis (D.A.T.A.) can assess over 70,400 words per second (~a 280 page book) in one second, it may be used as a one-time review of your existing portfolio to identify firms those firms that are more likely deceptive than most other businesses. Again, this useful function of D.A.T.A. can help you make informed decisions about where to focus your team's analytical firepower, or serve as a way of inoculating your portfolio of firm's more likely guilty of deception than not.

Currently, most investment managers do not have qualitative factors in their investment screens. If they do, they are typically a guesstimate on the part of our research staff. Deception And Truth Analysis (D.A.T.A.) offers a scientifically-based score that evaluates over 30 language fingerprints in seconds, thus turning qualitative data into quantitative data; thus, improving your investment screens.

ESG investors have an even higher level of due-diligence required in their work. Deception And Truth Analysis is ideally suited to rapidly identify a company's potential governance issues as we are able to detect deceptiveness within seconds. This ability is also valuable for helping to establish the investible universe for ESG investors.