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Expanding your investment research with real-time alerts
March 14, 2019
4 min read
Investors and analysts must be aware of critical information on the companies and industries they follow to reduce any uncertainty around an investment thesis.
To ensure investors stay on top of all this information, AlphaSense includes a simple yet brilliant ability for users to save their keyword searches and set up email or mobile push alerts on any companies, products, industries, or investment themes they care about. These automated alerts include text snippets with keywords in context, and users can be notified at their chosen frequency.
Time savings on equity research you already cover
Analysts who need to comb through every new SEC filing can use AlphaSense to jump directly to relevant report sections and ignore unimportant filings. This is especially useful when larger companies file reports that are over 100 pages long and can take hours to go through.
To set up alerts, you will need to perform a search that you would like to save. This search can be connected to a single stock or a group of stocks (if you’re looking at how competitors are talking about an aspect of their business, for example). You can also save a general search that will allow you to catch any other material relevant to your portfolio.
I used the keyword candied fruit to narrow my search results for this example.
Once you have saved a search and set a frequency for your alerts, you will receive a warning whenever a new document is available and includes mention of your keywords,
I also recommend setting up searches that notify you about any adverse developments regarding stocks you cover. These can span from significant investigations such as SEC inquiry or unfavorable audit opinion to more nuanced searches for negative factors such as lower guidance or production issues.
Expansion of your investment universe or coverage
As shown in the previous example, you can set up searches that span all of the vast content sets included with AlphaSense, such as SEC filings, broker research, press releases, company presentations, conference call transcripts, news, and industry journals. This allows you to set up a search to identify new investment opportunities or companies similar to those you have already researched.
The possibilities are endless, and you can get very creative with the keywords you track. Here are some examples of my saved searches:
MY CORE SEARCHES REVOLVE AROUND NEGATIVE NEWS REGARDING COMPANIES because I am more orientated to the short side. SEC searches are necessary because they allow me to spot stocks with a built-in potential catalyst (if the inquiry produces results, the stock is likely to be impacted). While the presence of the investigation on its own is nothing that would automatically make the store an investment opportunity, at the very least, it allows me to learn about any new developments.
Variable Interest Entities (VIEs)
My other favorite searches are connected to company structure and accounting techniques, which can yield exciting companies I hadn’t otherwise considered. VIEs are closely related to particular purposes entities (SPEs), or entities where the company does not hold a majority of voting rights but does have a “controlling interest” and can be used to shield the parent company from financial risk. VIEs are frequently quite complex and point to an unusual company structure, which could lead to a need for more research.
More straightforward opportunities can come from searches connected to corporate actions, pointing to possible arbitrage opportunities. For example, tender offers by smaller companies can be an example of where investors can stumble upon mispricing. I also added an odd lot to the search, a well-known arbitrage strategy employed by smaller investors.
Better research with AlphaSense real-time alerts
Brilliant email and mobile push alerts can save analysts and investors an immense amount of time, lead to new investment opportunities, and be used as a possible starting point for complex investment research.
Jan Svenda is an independent equity analyst focused on the U.S. Small / Micro-cap space. He searches for long ideas trading around Net Current Assets Value (NCAV) and sharp pictures that showcase a significant potential for aggressive or manipulative accounting.
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