Tech Talk
:
ThemeBot, a Technology Innovation that is Making Waves within the Investment Business!
Event Type
Tech Talk
Tracks
Industry
TimeWednesday, September 162:45pm - 3:30pm
LocationBryant York Auditorium
DescriptionThrough this presentation, you will learn how technology is empowering Investment Portfolio Managers (PMs) to revolutionize the existing manual investment process, reaching nearly 600% increase in assets under management (AUM) within a month of it’s first thematic fund launch for J.P. Morgan Asset Management. You will explore an innovative machine learning based application used by PMs to generate thematic portfolios, which allows exposure to an investment theme, namely ThemeBot! Investment themes are large-scale macroeconomic, demographic or disruptive trends that are likely to play out in the mid to long term, such as cloud computing, genetics, renewable energy, etc.



INTRODUCTION

The conventional method for constructing thematic portfolios involves large teams of research analysts, each specializing in an inevitably narrow domain – carrying out extensive, possibly error-prone manual research into textual and revenue data sources. ThemeBot’s innovative capabilities enables the PM to search for any theme and create a portfolio in a matter of seconds. ThemeBot is designed to use a supervised Natural Language Processing Machine Learning model to help identify stocks that are most relevant to a thematic query, apply a quantitative model to quantify the company’s exposure to the theme and use the resulting scores to produce a thematic portfolio. It enables PMs to implement this revolutionary theme based investment strategy. ThemeBot simplifies the manual and resource-constrained process by using machine learning techniques. These techniques allows it to process millions of textual data and thousands of reported revenue line items to highlight the most relevant companies to a chosen investment theme. The theme query is user-defined, allowing new thematic concepts to be tested and modified quickly. The comprehensive depth and breadth of the data that it is able to process in a matter of seconds is truly astounding and allows global coverage of securities associated with an investment theme.

This approach streamlines both the initial inception and ongoing maintenance of thematic portfolios with high efficiency. ThemeBot’s state of the art architecture is designed to be real-time, highly scalable, efficient and resilient. ThemeBot is also used to gain insight into investment themes for research purposes.