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.
Our Clients are able to grow assets under management the old fashioned way: by earning alpha. As discussed in our Insights section, "DATA Beats the Dow," 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. Are you?
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 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.
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.
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 over 280 pages of text per second and more accurately. 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 or investment universe deserve the attention of the research brain trust. 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.
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.
Because D.A.T.A. can assess over 280 pages per second our Clients gain peace of mind by conducting regular portfolio reviews to ensure their are no black sheep lurking in their midst.
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?