GreenKey Technologies Launches NLP Tool for Hedge Funds

Chicago-based NLP tool provider, GreenKey Technologies (GK), has recently released a version of its Focus Studio application to help hedge funds transform the large volumes of unstructured text they read in order to more easily generate investment ideas.

GreenKey’s Latest Product Release

GK’s latest version of its Focus Studio application was launched in the past few weeks to help asset managers quickly gain insight from the unstructured data and text they currently consume as part of their investment research process.  The tool enables users to tag sentiment, extract topics and key metrics across research documents, summarize earnings call transcripts (including audio) and news using NLP.

In addition to letting clients leverage the tools directly, GK has recruited a number of sell-side analysts or “trusted curators” to build custom models based on their experience and insight on the issues, topics and metrics they feel are important when they read and analyze various types of content.  These custom models can then be fed thousands of documents and will identify trending topics, intents, entities, and can even provide innovative raw sentiment scores such as “word disfluency”. The pre-trained models also include in-depth product knowledge across a variety of asset classes including global fixed income, credit, equities, FX, and commodity markets.

Anthony Tassone, GK Founder and CEO explains their new offering saying, “NLP is already changing the way sales and trading occurs on the sell-side, enabling a wave of automation and insight generation across various workflows.  Now the buy-side can begin to leverage NLP to automate and scale their analysis, while retaining the “trusted curator” role of the sell-side research provider and analyst.”

Our Take

Founded in 2013, GreenKey Technologies is the creator of a patented speech recognition (ASR) and natural language processing (NLP) platform that recognizes complex jargon across real-time audio and text sources and transforms them into actionable insights. GK converts this real-time content into structured data that helps their clients automate and analyze complex workflows.  Currently GK has successfully launched their platform to two markets – public safety operators, and the sales & trading departments at investment banks and broker-dealers.

Of course, the AI-based research technology space has become increasingly crowded in recent years as firms like Sentieo, Causality Link, Aiera, and Liquidnet’s new Investment Analytics application all offer some overlapping features.  In addition, UBS has adopted NLP and machine learning to quickly analyze corporate and analyst sentiment evident in earnings calls and other corporate communications, while Morgan Stanley  began offering “machine-read analyst sentiment” (MRAS), a data set derived from 40,000 of the firm’s analyst reports a few years ago. 

Despite the competitive landscape, GK’s launch of its new Focus Studio product for hedge funds is an interesting application of the firm’s tried and true technology.  What is particularly interesting is the firm’s inclusion of the sell-side as a “trusted curator” to create turnkey models, enabling the sell-side to remain an important part of research advisory process.  This may also provide the sell-side a new way to commercialize its analytical expertise and to create new research/data offerings for quantitative investors.  It will be interesting to see how GK progresses with this new product offering.