IMD & IRD Awards 2022: Best alternative data initiative—QuantCube Technology

OVERVIEW

Combining its expertise in macroeconomics, artificial intelligence (AI), machine learning and big data analytics, QuantCube analyzes billions of alternative data points in real time to uncover macroeconomic insights, providing users with a critical edge in their investment strategies.

“Our UBAM Smart Data Equity Fund, exclusively based on QuantCube technology, has performed very well since its inception in February 2020, outperforming the S&P 500 on an annual basis. We are very happy to partner with QuantCube, given its focus on using data to make investment decisions for macroeconomic or bottom-up decisions. We believe that QuantCube has the expertise to address the challenge of big data entering the world of finance. We would not have the in-house capability to develop such technology ourselves.”
Tommaso Sanzin, managing director, alternative investment and cross-asset solutions, Union Bancaire Privée

THE SOLUTION

QuantCube’s Macroeconomic Intelligence Platform (MIP) delivers macro nowcasting indices on variables, including economic growth, inflation, employment and international trade for the G20 and emerging economies. Users benefit from the combination of rich, diverse and often unique alternative data sources on a single platform. Data sources encompass textual data, structured data, geospatial data from satellites and geolocation data tracking (e.g., international shipping, flights and telecoms data).

As well as real-time data, QuantCube’s data lake offers more than nine years of historical data. The company’s international team of economists, quant analysts and data scientists bring expertise in multilingual natural language processing (NLP), deep learning and machine learning techniques.

WHAT’S TO COME

New initiatives for QuantCube include the launch of commodity indicators to cover energy and mining as well as agriculture, and an enhanced macro platform, extending coverage to emerging markets, including India and Brazil. The firm will also shortly be announcing new partnerships for global distribution, as well as a joint product release with a renowned partner.

WHY THEY WON

Alternative datasets have fast become an indispensable component of large numbers of buy-side firms’ investment/portfolio management workflows, allowing them to identify and chase new sources of alpha on behalf of their clients. To that end, QuantCube’s Macroeconomic Intelligence Platform provides users with an ever-increasing array of structured and unstructured macroeconomic data, allowing them to potentially differentiate themselves through alpha generation, underpinned by increased levels of transparency and auditability.        

“QuantCube’s AI and big data technology is unique in its ability to examine vast amounts of alternative data in real time to derive meaningful insights from macroeconomic activities. While competitors typically specialize in one type of data or sector, QuantCube combs through vast datasets to find the most relevant indicators for macroeconomic conditions. We use sophisticated AI to process text, geospatial, geolocation, structured and unstructured data, including social media, professional networks, satellite imagery, blogs, transportation data, real-estate and hospitality data and consumer reviews. We help financial institutions navigate uncertainty in the global economy and support decision-making to create value for investors.”
Thanh-Long Huynh, co-founder and CEO, QuantCube

 

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