At AlbaCore, we focus on the long-term. As one of Europe’s leading alternative credit specialists, we invest in private capital solutions, opportunistic and dislocated credit, and structured products.
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Specialist in Asia Pacific, Japan, China, India and South East Asia and Global Emerging Market equities.
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Our philosophy is very simple. We are constantly searching for high quality businesses and when we acquire them, we will work relentlessly with them to create long-term sustainable value through innovation, ESG-led and proactive asset management.
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formerly Realindex Investments
Leader in active quantitative equities across Australian equities, global equities, emerging markets and global small companies.
Backed by a unique blend of research, portfolio construction and risk management, focused on uncovering original insights and translating them into investment strategies that are active and systematic, aiming to generate alpha.
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At Stewart Investors, we believe in putting people first. Our investment world-view is of a series of partnerships – with each other, with our clients, with the companies we invest in, the people who buy their goods and services, and with the wider society in which we all live and work.
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Using AI to extract sentiment from conference calls
The tone or sentiment of management earning call discussions can be an additive and significant source of alpha generation for investors, a study from Realindex finds.
Our ongoing research on extracting alpha from conference calls is moving strongly into the area of natural language processing (NLP) and the use of Artificial Intelligence (AI) tools. Previously, it was revealed that the length and complexity of earnings calls, as well as extracting sentiment could hint at future stock return performance. These alpha signals influenced our portfolio exposures to the banking crisis in March 2023, ensuring we were underweight to Credit Suisse and to US regional banks like SVB Financial, Signature Bank and First Republic.
As we continue to uncover more opportunities to generate alpha in this area of research, we find that AI is a potent tool to enhance contextual awareness in language models, better capturing sentiment in earnings calls transcripts, specifically management’s prepared presentation, analyst questions and management answers.
What we’re doing with this at Realindex
In this short note, we show that implementing FinBERT or a variation of BERT re-trained on financial data can provide meaningful information on future cross-sectional stock price returns. We are looking to implement a variation of this sentiment score for our alpha model as it is both additive and significant in alpha generation.
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