AI in Asset Management: A family office associate implements strategy in less than a day

One of the joys of building a startup is working with customers at a level of depth and closeness to truly understand their challenges. Then, you get to bring all of your creativity and resourcefulness in developing a new solution.

In this series of posts, we’ll walk through some of our actual customer use cases, to show how firms and individuals use Thematic to solve for their investment research and product development needs.

So here’s the next Thematic Use Case: the family office associate.

The challenge

Our customer is an associate at a family office. His team is very small, but managing a significant amount of capital. The family office focuses primarily on public market real estate but invests opportunistically moving between geographies, asset classes, and positions in the capital stack as risk/return dynamics evolve. Given current market dynamics creating a window of opportunity, the associate is tasked with quickly building a portfolio of profitable growth companies. With the firm’s investment fundamental parameters and feedback from the team, our customer needs to create a tested, defensible portfolio in a few days.

Solutions

Our customer starts by creating a universe of equities based on the firm’s screening criteria. With Thematic, he dictates the screening criteria and metrics, and Thematic interprets it with natural language prompt. This saves him a lot of time in hunting and pecking through thousands of available company metrics.

After finding companies that meet the initial criteria, our customer creates an initial portfolio to see how this group of companies performs over time. He then creates another version, removing companies involved in real estate, as to avoid any conflicts of interest.

Now with a much smaller universe of 11 companies, our customer deep dives into each one to get a better understanding manages growth, margins, and cash. This is a process that is tedious and repetitive but gets done quickly on Thematic.

Conclusions

Overall, our customer was very happy to turn around this project in less than a day, enabling him to capitalize on an investment opportunity while the window was open. We’re working with him on additional product features, such as automation and customization of the AI training data that his family office has access to.

Give Thematic a spin, for free! Our AI-powered research platform, Analyst, is optimized to help you kick start your research project, or go deep on individual companies. If you’re looking to build portfolios or indices for tracking and benchmarking purposes, check out Builder.

As always, we welcome any feedback that you have for us!