Alternative data vendor of the year: RavenPack

Armando Gonzalez, RavenPack

Risk profiles are evolving, and it is increasingly difficult accessing data to quantify emerging risks from traditional market sources. Leveraging alternative data enables portfolio managers to assess the social and geopolitical impact of emerging threats on their investments.

News sentiment analytics is increasingly seen as a more reliable way to identify, assess and track risk factors. In a more connected global market, news sentiment towards companies can indicate market performance and drive changes in asset prices, volatility and volume. Using real-time news sentiment data gives firms an advantage in interpreting the direction of price movements and making informed, up-to-date investment decisions.

RavenPack offers a comprehensive data solution for global risk analysis to isolate and manage fast-moving issues. The data analytics platform uses natural language processing (NLP) algorithms to scan the news in real time and calculate sentiment and volume risk metrics. RavenPack’s clients include some of the most successful systematic hedge funds, as well as asset managers and banks. And the customer renewal rate is 95%.

News sentiment and volume metrics are used in forecasting equity volatility. Firm-level news and news about broader market drivers can help in forecasting and managing systematic risk. Analysing news volume can also help investors anticipate bond liquidity risk more accurately. News analytics can provide an augmentative approach for assessing the quality of credit ratings and can help in environmental, social and governance portfolio risk monitoring. News archives provide historical data for comprehensive back-testing and training. News data is also an established approach to assessing organisational key risk indicators.

RavenPack’s Edge platform can analyse content in 13 languages and covers over 40,000 sources of news and social media. It is trained to identify millions of individual entities, including companies, people, products, places, organisations, currencies and commodities, and over 7,000 market-moving events. The coverage has been expanded for this new platform to include over 12 million searchable entities, including 6.5 million public and private companies. That’s about 25 times more entities, including 150 times more companies than before.

For almost 20 years, RavenPack has used artificial intelligence to provide useful business insights. The technology it provides for knowledge workflows has influenced quantitative investing, systematic trading and macroeconomic analysis. RavenPack aims to continually innovate and increase capabilities to be positioned at the leading edge of alternative data. Hundreds of white papers by leading academics and researchers demonstrating the value of their news sentiment analytics have been published. RavenPack continues to invest heavily in research and development and data science to produce new and innovative analytical techniques, backed by solid back-testing research.

Judges said:

• “News sentiment analysis via NLP is a valuable way of spotting emerging risks.”
• “Great sentiment analytics.”
• “RavenPack has a broad scope and coverage as an NLP sentiment provider, and multilingual NLP gives them an edge.”
• “Use of alternate data to understand how events impact investment decisions is a leading-edge capability.”

Armando Gonzalez, Chief Executive and Founder of RavenPack, says:

“We are honored to receive the Best alternative data vendor of the year award. RavenPack leads the way with the most sophisticated text analytics platform that turns news, transcripts, filings and any text in different languages into actionable indicators. Coupled with our world-class research, our offering empowers data-driven decision-makers at the most successful hedge funds and Fortune 500 companies to capture investment opportunities, mitigate risk and leverage market intelligence.”

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