Something we have heard from fundamental asset managers is that artificial intelligence is interesting, but it is difficult to incorporate it into their process. We wrote a post about different ways investment managers can begin implementing AI here, but we’re also always trying to make our product, Boosted Insights, better and more easily consolidated into institutional investor’s processes. We are pleased to announce the launch of our new product feature, Portfolio One Pager, to make any fundamental manager’s life a little easier.
Portfolio One Pager
Our Portfolio One Pager, pictured below, showcases different aspects of the fund manager’s machine learning portfolio in a simple, one page format.
Top Section
The upper left section of the page highlights the type of model and portfolio, like region, stock universe, rebalance period and any portfolio settings. In the upper right, performance charts are shown. In the second row, the stock ranking returns (Q1 – the best ranked stocks, against Q5 – the worst ranked stocks) and portfolio returns are shown.
Bottom Section
In the bottom section of our Portfolio One Pager, it showcases the top 10 and bottom 10 ranked stocks in the user’s stock universe (these are stocks that fit into Q1 – the best ranked stocks, and Q5 – the worst ranked stocks), as well as the top 10 upward and downward movers of the portfolio’s rebalance period. The top 10 upward and downward movers will adjust at every rebalance, whether that is weekly, monthly, quarterly or some custom time frame.
Using it in real life to implement AI into your daily stock picking process
The print to PDF function of our Portfolio One Pager makes this very simple to integrate into any fundamental asset manager’s investment process.
Step 1:
Create a machine learning portfolio with Boosted Insights. Our customer success team is always here to help in the model/portfolio creation process (and beyond!). Once the asset manager has created and honed one they like, they’re ready to start using it. Many of our fundamental managers like using their ML portfolios for equity idea generation.
Step 2:
The investment manager logs in to Boosted Insights ahead of their morning meeting and prints their portfolio to bring ideas to the meeting. When the investment team asks if anyone has thoughts/ideas for equities, the top 10 upward and downward movers is where the asset manager can look for ideas.
Step 3:
In the example above, they can say “The Boosted Insights ML model I created has Hasbro, Inc. (HAS) moving down 253 ranks. I looked into it further and I think this is a good short for the firm and here’s why.” If they’re a long-only shop, they can say “ServiceNow, Inc (NOW) has moved up a lot this week. After looking into the positive drivers, Working Capital to Total Assets is really good and I think we can increase our long position in this name.”
Takeaways
At Boosted.ai we believe that every asset manager can benefit from implementing AI in their process. The vast amount of information at people’s fingertips with artificial intelligence and machine learning is what makes it so powerful, but also can be a little overwhelming. Portfolio One Pagers give clients the tools they need to take our machine learning algorithm predictions from theory into practice to drive success for their portfolios and companies. If you have any questions at all, please reach out to us here.
