Forensic Alpha

We use proprietary NLP algorithms to perform a forensic analysis of public company filings. We turn unstructured data found in the notes to the accounts and in the governance disclosures into structured data. We process and analyse that data, hunting for the presence of common red flags that are known to be indicators of weak fundamentals, imminent problems and/or, in extreme cases, fraud.  Our clients are mainly asset managers and hedge funds, looking to identify companies that may be at risk.
We are led by a management team comprising three experienced founders: an ex-portfolio manager from a top investment firm, a technology expert with a background in artificial intelligence and a veteran global asset management executive.

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Latest Tweets from @ForensicAlpha

  • A painful reminder to investors this morning to keep track of growing contract assets, particularly in an inflationary environment. ITM Power had been flagged by us as a "high risk" stock for this very reason. $ITM
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  • Cooking the books takes hard work and dedication...Bellenhaus testifies that "faking the required data was an extremely complex process" as he "worked under extreme time pressure" ,
  • "Investors who want to restore standards should start with the financials" Indeed, you would think...good article via ,
  • According to Softcat management, the increase in receivables was due to the introduction of a new finance system, but digging deeper into the annual report reveals additional issues with growth in "unbilled receivables" (up 150%) and a rapidly deteriorating ageing profile.
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  • Our dashboard for $RCM had been flashing red for a number of months ahead of the profit warning today. From the CEO comments on the call it appears Accounts Receivable were at the heart of the problems
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