Identifying Investment Themes - This system uncovers investment themes and their related tickers by analyzing research reports and financial news. While some of these themes may not have seen significant capital flow yet, we carefully monitor them for early signs of momentum, such as price and volume increases, along with growing retail interest (tracked through social media sentiment). Once a theme begins gaining traction, we receive notifications, enabling us to make timely and well-informed investment or trading decisions.
Leveraging AI for Enhanced Decision-Making - To streamline and enhance the investment process, we employ AI techniques, including large language models (LLMs), to handle tasks like theme extraction, theme combination, and ticker research. This helps us efficiently process vast amounts of data. The system also uses an agent-based framework, where AI agents work independently to research and analyze information. This adaptive approach allows the system to quickly respond to emerging opportunities and shifts in the market, ensuring timely, data-driven decisions.
Investment Workflow
This system is already in operation across multiple accounts, providing valuable insights for informed and profitable investment decisions. Below are results from two of these accounts, with slight variations due to the manual selection of themes and tickers and differing risk targets.
Portfolio 1 (15% Volatility Target)
| Returns (2024) | 50.00% |
| Sharpe Ratio | 2.55 |
Portfolio 2 (10% Volatility Target)
| Returns (2024) | 42.67% |
| Sharpe Ratio | 3.33 |
📈 Better Returns
- ✅ Identified themes with potential for outperformance
- ✅ Shortlisted tickers to express views effectively
- ✅ Focused on alpha generation; signals can be used for beta strategies
⚖️ Higher Sharpe Ratio
- ✅ Structured trades based on conviction, using spot trades and options to balance risk and reward
🔀 Low Correlation
- ✅ Diversified across global themes
- ✅ Taking both long and short trades
