Stradegi Consulting: Actionable Intelligence for Investment Management
Venky Sethuraman, Head of Business Development for nDegrees
A typical day in the life of investment managers involves demonstrating alpha to justify active management fees amid competitive pressure from passives and finding ways to reduce cost and build scale. Overcoming these challenges involves transforming their data strategy, technology architecture, and operating models to accommodate artificial intelligence (AI) for extracting new actionable insights that support data-driven decision-making. However, due to the lack of an effective mechanism to leverage their data, most investment management firms rely on expert technology consultants who can help them set realistic objectives, find the expertise, and establish a scalable infrastructure.
With years of experience in helping investment management organizations plan and implement transformational change, Stradegi Consulting set out to change the game forever. In 2015, Stradegi Consulting began building what is now an industry-leading data science practice, exemplified by the launch of their new AI-powered research platform, nDegrees. “We had an unfair advantage while building our AI-powered insights platform, nDegrees,” states Venky Sethuraman, Head of Business Development for nDegrees. “Our years of experience working on operating model, technical architecture, and fundamental investment process challenges equipped us with the knowledge that a generic solution wasn’t going to cut it.”
nDegrees is an AI-powered research platform that augments traditional financial measures with insights extracted from unstructured data.
Designed from the ground up, it can generate actionable insights for investment managers, without inefficient and over-engineered functionalities. It extracts content from any financial text, organizes structured, unstructured, and alternative data sets in a single ecosystem, and uses powerful analytics and visualization for actionable insights.
Investment management companies need the flexibility to define and extract insights from entities, relationships, and events that are important to them—not from a predefined list determined by an NLP solutions provider. Stradegi developed an indigenous finance-specific NLP Engine that sits at the heart of nDegrees. As a value add, their dedicated Analytics and Data Enrichment teams work with clients to ensure nDegrees meets their specific requirements and adds maximum differentiated and proprietary value from day one without the risk of alpha decay.
One of Stradegi’s projects involved building an event impact analysis feature that quantifies the historical impact of an unstructured data point—like an event, such as a product recall—on a traditional financial measure like stock price. With just a few clicks, Stradegi’s clients can determine statistically how a manufacturer’s stock price is likely to be affected, over any time horizon, if they issue a product recall. nDegrees can do this for any event important to its clients, across one company or peer group, and quantify its impact on any traditional, structured data point.
What’s in Store?
The nDegrees product roadmap is client-driven and includes exciting developments such as modelling new languages, rather than relying on translation services. “For clients in a more mature AI adoption phase, we work on proprietary analytics that can be used at the core of their investment approach,” explains Sethuraman. A good example is Stradegi’s collaboration with investment managers on how nDegrees—unlike generic NLP solutions—can be flexibly adapted to support sustainable investment strategies. “We do this in several ways, such as extracting ESG-related events from text or exploring how relationship networks can be mined for ESG-related insights.”
Recently, Stradegi launched nFlows, a no-code business solutions platform that allows users to build, adapt, and control their own scalable solutions. Built on Stradegi’s big data infrastructure, nFlows can be scaled to meet a firm’s enterprise-wide investment management requirements. In catering to some of the largest businesses across Southeast Asia, Europe, and North America, Stradegi has earmarked a spot for itself in the global investment management marketplace.