A FinTech company of Datrix group

Thematic Investing

FinScience leverages AI-based technologies to combine financial data with alternative data in order to create non-conventional thematic lists of companies that can be included in investment portfolios by institutional/private investors or in new products by financial institutions.

Dedicated to Institutional Investors and Private Investors

The main goal of our thematic solution

The main goal is to identify “high-growth potential” companies that drive disruptive innovation in industry specific segments (es. Cloud, eCommerce enablers, Medical Technology, Cyber Security, etc..)

This selection goes through a proprietary methodology that harnesses, weighs and ranks different standard and non-standards factors.

In a world where a lot of investment decisions are made based on past experiences or historical data, thematic investing provides something different: it’s forward thinking to capitalise on future trends by identifying macro-level themes today that are likely to flourish over the coming years and even decades.

According to Morningstar, the number of funds available to investors has also grown substantially, with 154 thematic funds being launched in 2019 alone, bringing the total to 923.

FinScience - Our Thematic Alternative Data is on Bloomberg

Key differentiators of our solution

1.

Data-driven, flexible and granular definition and identification of trending themes

2.

Monitor the connection between the company and the theme through daily alternative metrics.

3.

Check the consistency of trend and subtrends by looking at alternative metrics namely popularity and sentiment for each themes selected

4.

Identify companies impacted by theme even if not involved and verify the direction of the impact (positive or negative) represented by the sentiment metric.

Alternative Data for investment decisions

Alternative-Data-Driven selection of trending themes that include companies related to theme:

  • to generate new investment ideas
  • to measure Portfolio exposure to themes

Thematic application

Portfolio Optimization

Enable the ability to look at current portfolio and to see how that portfolio is sliced and diced in a thematic way.

Thematic stock picking

In a pick list, private investors can find all the companies (and the best ones) that are classified as connected to a theme.

Trending themes detection

Using data and AI-based technology
to identify trending theme
and stock exposed to those.

Use case 01

Thematic Portfolio Optimization

The FinScience Medical Technology Selection reached +62,09% of returns in the last year. While S&P 500 gains almost 22% in the same period, Nasdaq Composite almost 54%.

Even if we look at an industry-specific benchmark such as the Fidelity Select Medical Technology and Devices Portfolio (+30.51%), we discover that our Medical Technology portfolio overperformed it by almost 31% in the period taken into consideration.

AssetsReturns for the period*
FinScience Medical Technology Selection+62,09%
Fidelity Select Medical Technology and Devices Portfolio+30,51%
NASDAQ Composite+54,03%
S&P 500+22,00%

Use case 02

Thematic Stock Picking

Enphase Energy is a good example of the FinScience Data’s  predictivity. Indeed, in the last Selection phases (on December 2019 and June 2020) the company was the most rewarded in terms of FinScience Sentiment metrics in the Green New Deal Selection.

This positive attitude towards the company was than confirmed by the financial performance of the company in the next months after the Selection updates. Indeed, the company gains +105% in the period December 2019-June 2020 and +344% in the period June 2020-January 2021, resulting one of the best companies in the Selection.

Use case 03

Trending themes detection

The positive sentiment trend of 5G has reversed on 4 April 2020 with the lowest value of the entire period (Dec 2019 – Jan 2021) with a daily sentiment of -0.12 due to some conspiracy theories that linked the COVID-19 diffusion and the 5G technologies and spread news that make doubt on the health impact of these innovations.

This perception slowed the performance of the FinScience selection in April-May, which, however, recovered in subsequent months along with the sentiment associated with the theme.

The FinScience added value is to constantly monitor companies and trends thus allowing to stay up-to-date regarding sentiment, popularity and other alternative metrics that may impact the financial markets.

Alternative Data for investment decisions

Thematic Portfolio Optimization

Thematic Stock Picking

Trending themes detection

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