Investment teams have confirmed VORPAL unique attributes in driving operational expense down while assisting in the consistent generation of alpha.
Is VORPAL necessary?
We built the VORPAL platform in the context of an enterprise with technology that no one has but is something that everyone needs to be competitive in the future of fund management. VORPAL enables first mover status in the future of Human + Machine enhanced Funds. Vorpal has raised the bar to fund management.
How do we use VORPAL?
- VORPAL works alongside the investment team, providing expert support
- VORPAL drives analytical consistencies throughout the investment process
- VORPAL is a solid back up to the investment team
- VORPAL helps fast track new product offerings and it is great marketing
How does VORPAL enhance Portfolio Managers (PMs)?
- Fundamental PMs: Vorpal streamlines the fundamental investment process enabling the firm to scale exponentially. It also enhances the investment process with quantitative and AI investment modules that will improve return potential.
- Long/Short Funds – VORPAL identifies optimal long/short pairs.
- ETF/Index Funds – VORPAL ranks the assets for optimal portfolio weight distribution.
- Quantitative PMs: Vorpal produces unique proprietary fundamental and AI orthogonal data for alpha discovery enabling the move to Quantamental and AI enhanced algorithms.
- AI PMs: Vorpal produces unique proprietary fundamental, technical, and momentum data that can be used in AI model training.
Can VORPAL be used as an independent benchmark?
- Asset management companies struggle to determine a PMs’ value. Whether the PM’s performance was actually due to skill or just a luck factor of the market doing well or poorly. Existing benchmarks have its limits that PMs exploit.
- VORPAL can be a new independent benchmark firms are seeking to gauge the capabilities of PMs.
Large funds should already have their own VORPAL technology, right?
Not really. C-level executive want this technology but successfully building it in-house is near impossible. Job security is a big factor that has led to poor designs by inadequate experts seeking to sabotage such efforts.
Do small funds have their own VORPAL technology?
Small funds lack the resources to run their company efficiently, let alone have the necessary expert resources to build an in-house VORPAL platform.
Can VORPAL drive operational efficiencies?
Absolutely. VORPAL will enable PMs to expand their stock universe coverage without adding to its research staff. The machine is designed to do nearly all the analytical work that sell side and buy side analysts, PMs and traders should do before making an investment, but don’t have time to do because they are only human. Should a member of an investment team (analyst, PM, trader) leave or retire, VORPAL acts as a great backup to that person, ensuring the funds’ existence until a replacement is found.
Is the landscape primed for VORPAL?
- On CNBC (3-2-23), Einhorn of Greenlight Capital said “value investing as an industry is dead. The money has moved from value investing to index funds and it is not coming back. The people who use to be able to charge a management fee and have a staff of research analysts and use to get money every month to invest in new ideas. That has been switched to eight basis point index funds.
- Vorpal drives operational efficiencies which means cost savings. That was discussed above.
- The dying breed of value investors creates a unique opportunity in value as a strategy. Vorpal enables value investing as a style (VORPAL PM styles are configurable: growth, momentum, etc.)
- The need for Index and ETF differentiation has never been greater. VORPAL, which can outperform any equal or market weighted basket of stocks will drive the next breed of smarter Index and ETF products.
What is the origin of VORPAL?
A multi-billion dollar fund (MBDF) with a Quant subsidiary engaged BroadEdge to harness Quantamental signals for their Quant platform in their never ending quest to acquire orthogonal alternative data. But with the proliferation of AI, we knew that PhD mathematicians will be replaced with machines that will discover alphas at a faster clip than any team of humans. Hence we proposed to build a more complete system with a fundamental core incorporating the latest technologies and with an alpha discovery environment. The MBDF just wanted the Quantamental signals, so the BraodEdge team designed and built VORPAL on its own.
Does VORPAL utilize LLMs (ChatGPT, BARD)?
Yes, BroadEdge uses existing LLMs via API calls for the purpose of summarizing company information such as earnings calls, extracting financial data, and sentiment analysis. The latest versions of LLMs are prone to hallucination and hence we need to double check the output.