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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  • Enjoying the incredible sunset from our office this evening
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  • Thematically, Vestas might be in the right place, but movements on the balance sheet, transactions with related parties and substantial cash outflows in H1 raise a number of questions for investors $VWS
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  • In a breakthrough discovery, academics find that firms tend to hold more audit committee meetings after misconduct is discovered
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  • An important reminder of why analysts should closely track DSO (Days Sales Outstanding), taken from MONEY MEN by . Unpaid invoices piling up on the balance sheet are a classic sign of earnings manipulation.
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  • Walking on Broken Glass... Here, Gerresheimer provides another example of the value derived from monitoring accounting red flags.
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