Neuravest Research, a provider of AI-driven investment solutions for institutional investors, today announced the public launch of its portfolio construction and management platform, designed to help asset managers deliver superior fund performance through algorithmic portfolios using best-in-class alternative data and AI technology. Neuravest Research is a successor company to Lucena Research, a leading data validation and predictive analytics company co-founded in 2014 by Erez Katz, who remains as CEO of the new enterprise. Neuravest will leverage both Lucena’s industry-proven data validation platform and its robust AI-based portfolio construction & management capabilities.
Rapid, comprehensive data validation and curation
Neuravest only partners with leading data providers that the firm has determined to be “best-in-class.” This is driven by the firm’s proprietary technology that can quickly evaluate alternative data sets and assess their predictive qualities. Once those determinations are made, Neuravest enhances the data into predictive features suitable for Machine Learning, which are then applied to constructing model portfolios, uncovering market insights and exploiting investment opportunities.
“This isn’t about aggregating all the data, but combining the best data factors most informative of an investment goal. It’s about identifying the best data,” explained Katz. “Our platform can make and validate these assessments extremely quickly, allowing our clients to take the most promising investment strategies to market at a fraction of the time it would normally take.”
Neuravest is currently partnering with 37 separate alternative data providers. These include both Fortune 500 leaders as well as boutique, specialized firms focused on delivering unique data sets. Its data coverage segments include consumer credit, payroll, weather, corporate earnings, corporate events, social media & crowd sentiment, financial news, and many more.
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Bringing to market new investment strategies or enhancing existing ones
Institutional asset managers can choose to take advantage of Neuravest’s pre-configured thematic portfolios with proven track records, or access customized models based on a manager’s investment thesis. Neuravest will also extend an asset manager’s existing investment approach with uncorrelated strategies designed to reduce risk and enhance the portfolio’s diversification and performance. These uncorrelated portfolios can also be added on top of existing investment products as a hedge to protect against an adverse change in market regime. With all investment options, Neuravest’s platform scientifically validates each strategy before risking capital.
“We thoroughly back-test each investment approach, and then perpetually paper trade it to validate its efficacy at no cost to the customer,” said Katz. “We call it ‘try-before-you-deploy,’ and once a model is fully validated, it can be quickly brought to market.”
To date, Neuravest has brought live 18 separate thematic portfolios and numerous bespoke implementations covering a range of target assets, investment styles, turnover goals, holding durations, and themes, including: risk parity, long/short equity & ETF based market neutral, sector rotation, global macro, Futures, FX, commodities, and many more. All these portfolios have strong track records of consistently outperforming their respective industry benchmarks.
Putting their own money to work
As further validation, Neuravest is putting its own capital to work within its thematic portfolios and providing customers and prospects full transparency into how the underlying portfolios perform with real capital in live market conditions.
“We are eating our own dogfood,” said Katz. “But this is not about us becoming an asset manager; rather it’s the most direct way we believe we can show empirical validation of our solutions.”
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