Invisage, a UK based research analytics platform that extracts actionable trade ideas from sell-side research, recently released its COVID-19 Thematic and Stay at Home Thematic Indices, which overlay two popular investment themes with sell-side research recommendations to create unique portfolios.
Two New Thematic Indices
Invisage, recently launched COVID-19 Tactical Thematic and Stay at Home Strategic Thematic indexes produced by leveraging their research platform to systematically read the research produced by more than 150 sell-side investment banks and independent research provides.
Invisage’s research tracking platform enables them to identify key themes from sell-side macro or thematic research; select sectors or industry groups likely to benefit from these themes; and, identify the most attractive stocks in these sectors based on the recommendations of the most accurate analysts as measured by their system.
The firm’s new COVID-19 Tactical Thematic Index includes the 19 stocks from the technology, services and consumer goods sectors that the most accurate sell-side analysts believe will benefit as a result of the novel coronavirus pandemic. As of March 30, 2020, the COVID-19 Tactical Thematic Index had risen +4.7% compared to the 15.7% drop in the S&P 500 Index.
The firm’s new Stay at Home Strategic Thematic Index includes the 33 stocks from the technology, services, consumer goods, and industrials sectors that the most accurate sell-side analysts believe will benefit as a result of the various shelter in place rules adopted across the U.S. in response to the COVID-19 pandemic. As of April 9, 2020, the Stay at Home Tactical Thematic Index had risen +6.3% compared to the 10.4% drop in the S&P 500 Index.
Founder and CEO of Invisage, Vishnu Thurpati, explained the launch of these indices, “The development of these two new thematic indices was to demonstrate how sell-side investment banks and independent research firms could leverage our technology to systematically create indices and portfolios that research producers could market to their customers in different ways – either as specific investment ideas or investment products like ETFs, thematic indices, or other related products.”
UK-based research technology provider Invisage was founded in 2016 by Vishnu Thurpati, a former buy-side consultant and technologist; and, Dr. Harsh Dadhich, a former marketing manager and consultant.
The Invisage platform automatically extracts actionable trade ideas from sell-side research across various asset classes (equities, fixed-income, macro, etc.) and calculates the performance of those research ratings. The firm also connects research generated macro themes with bottom-up fundamental research to help investors understand the impact of such trends on their portfolio holdings, and enabling them to build active thematic baskets leveraging the sell-side’s research insights.
The firm launched a beta version of its platform in May 2019. Shortly thereafter, Invisage was chosen to join Accenture’s Fintech Innovation Lab where it won one of the four top spots in capital market cohort. Also in 2019, Invisage entered the F10 Fintech Incubator and Accelerator in Zurich where it was selected as one of the top 15 start-ups out of 360+ teams. The firm also won multiple awards including RegTech Insight Award 2019.
More recently, Invisage has added two industry veterans to its team. Brijesh Malkan, formerly an analyst, consultant, business strategist and corporate development executive for firms like BCA Research, SGA Analytics, Legal & General, and LatentZero joined the Invisage team in the UK. In addition, David Conner, who held various senior management roles in sales, commission management, and electronic trading at Citigroup, Sungard Financial Systems, JP Morgan, Lehman Brothers, and Paine Webber also joined the team in New York City.
Invisage’s launch of its two new COVID-19 and Stay at Home Thematic Indices is an extremely interesting demonstration of the firm’s ability to extract investment ideas from a wide range of sell-side research, combine these ideas into portfolios or indices, and measure the performance of these indices.
Most investment banks and brokerage firms produce thematic or macro-economic research. And while many buy-side analysts and portfolio managers enjoy reading this research, many complain that they wish the banks or brokers would do a better job of translating these macro trends or themes into specific investment ideas they could execute. Unfortunately, most strategists or economists don’t recommend individual stocks or bonds, thereby leaving clients searching for ways to translate these themes or trends into actual trade ideas.
We suspect that given the difficult market environment that many research producers find themselves in today, a number of brokers, investment banks, and independent research providers could find the Invisage platform helpful in growing their research revenue. Invisage can enable sell-side firms to systematically translate their thematic or macro-economic research into specific trade ideas or unique investment vehicles, a development that should enable these firms to market and commercialize their research in a new way.