Jason Pereira talks to Rebecca Wilde, Managing Director of StockSnips. StockSnips is an AI and natural language processing platform that harvests data to provide stock purchase and sale indicators, bringing artificial intelligence to the world of stock selection.
Episode Highlights
- 0.38: At StockSnips we are providing investors with a low-cost high performing portfolio model that leverages our proprietary sentiment signals, allowing investment managers to go ahead and provide a competitive edge to their clients, says Rebecca.
- 0.57: Rebecca has found a way through AI, natural language processing, and machine learning to derive a quantified signal that is a robust proxy for measuring investor sentiment.
- 3.14: What Rebecca wanted to solve is how independent RAs can get back into the game of active management and not have to go down the rabbit hole of simply falling behind the passive indexes that have performed greatly.
- 4.01: Rebecca talks about the type of unstructured data that they are harvesting in order to make the recommendations.
- 6.54: We have message sentiment DK model that solves the problem of how you take raw sentiment data and create a signal from it, says Rebecca.
- 12.13: It is a nice thing to see that all algorithms are picking up very accurately what is going on in the market and it's able to provide that up capture but also protect on the downside as well.
- 14.46: Rebecca talks about portfolio composition. How many positions do you typically hold for things and is there any allocation to cash?
- 19.32: If there was an easier way to reliably predict the style rotation, sector rotation, size rotation of markets we can be able to build much more robust models, says Rebecca.
3 Key Points
- The cost of doing signal generation, getting the technology up to speed, and delivering it at scale is unfathomable for any individual investment manager to do on their own, says Rebecca.
- Rebecca has constructed a model with the wall street equity research firm where they have gone ahead and used growth value, quality, removed momentum and replaced it with a new sentiment signal and that has significantly outperformed many benchmarks.
- Rebecca is working not only on the education of artificial intelligence aspect but also how one can use this in its strategy or how can you use this in marketing to go ahead and gain new clients.
Tweetable Quotes
- "You will find a lot of Robo advisors are taking very basic measures of sentiment and then making trades, which is moving markets and it is a big problem." – Rebecca
- "We are kind of in our go to market approach. We have been targeting smaller independent RA's who have found great success." – Rebecca
- "The fact that our models are entirely systematic, there is no human intervention, and it remains low cost. It leads to a very, very scalable model." – Rebecca
Resources Mentioned
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