Atlanta-based Neuravest Research, a provider of AI-driven investment solutions, recently announced the launch of Data Refinery™, a partnership program with a group of vetted “best in class” alternative data providers that produce predictive signals that can contribute to profitable investment strategies.
New Neuravest Product Launch
The Data Refinery™ program leverages Neuravest’s data analytics platform to evaluate and vet a group of alternative data providers in order to discover those that can consistently generate alpha. Neuravest then employs machine learning to construct investment strategies that can be back tested and further validated in perpetual trading market simulations. Once empirical evidence of a data set’s value has been confirmed, Neuravest can quickly bring the investment model to market via various types of off-the-shelf or customized portfolios that meet fund managers’ specific needs.
Neuravest’s Data Refinery program focuses on what it has found to be “best-in-class” providers for each specific type of data set. To date, 42 providers have been chosen to be part of Neuravest’s Data Refinery platform, including: Benzinga, Equifax, Wall Street Horizon, OWL Analytics, New Constructs, Pynk, and a number of others. Neuravest’s list of Data Refinery partners are a dynamic universe of providers that will continue to evolve as existing alternative data sets become widely disseminated and new ones enter the market.
Through the Data Refinery program, alt data provers gain a distribution channel to asset management firms that would normally not be clients since they often lack the resources, and expertise to integrate and analyze raw data. In addition, the data partners receive Neuravest’s unbiased validation reports, which include white papers, technical and marketing presentations, defensible backtests, and perpetual access to a perpetually traded model portfolio that showcases their data in a live scenario. Data Refinery partners also share in the revenue that clients pay for Neuravest strategies based on portfolio adoption and usage.
Erez Katz, Neuravest co-founder and CEO explained the benefits that asset managers get from the Data Refinery program, “Active fund managers realize that to deliver performance that can beat their benchmarks, they can no longer simply rely on the same fundamental research that is widely available to all investors. At the same time, they understand the enormous undertaking in building out their own data science and AI capabilities. Through our Data Refinery, Neuravest does the heavy lifting for them. We select only proven data that our analysis shows can consistently deliver value. From there, we implement market-ready investment portfolios that can be used as stand-alone strategies or incorporated into a broader investment paradigm.”
Neuravest’s recent launch of its Data Refinery™ program makes considerable sense as a way for it to market “vetted” alternative data providers and the investment strategies built on their datasets to its asset management clients. In addition, this program looks to be a way to attract and sell Neuravest’s analytic and data testing capabilities to the alternative data community.
In the past six to eight weeks, Neuravest Research has kept extremely busy, announcing a number of new developments, including the firm’s launch a little over two months ago, the addition of Seth Merrin as Executive Chairman and lead investor in late March, the hiring of former 7Park executive JP Gravitt as Head of Research and Data one week ago, and then last week’s launch of its new Data Refinery™ program.
We suspect Neuravest will remain busy in the next six months or more with key staffing additions, new product launches, and the addition of key new alternative data partners to its Data Refinery program. All of this should enable Neuravest to become a more sustainable business and increase its visibility. However, the big question we have is whether Neuravest can gain traction for its services with the asset management community. Not only will this be a key driver of revenue for the firm, but this buy-side audience will also make Neuravest an attractive distribution channel for alternative data vendors. We will have to wait and see whether Neuravest can become an integral solution to help asset managers make use of alternative data as part of their investment process.