An investment analyst saves 25% of his time during earnings season

Industry

Wealth Management

Role Type

Analyst

25%

Increased productivity

In automating the research process, this analyst reallocated time saved to refine strategies and formulate stronger investment theses

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One platform, all the right info

Thousands of trusted sources – SEC filings, broker research, event transcripts, news & more – bolstered confidence in work product

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Unique insights uncovered

Sentiment analysis and theme extraction identified key inflection points in earnings calls and helped to generat new ideas

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The company

As an independent wealth management firm based in Toronto, Richardson Wealth is known for their strategic partnership with clients, entrepreneurial approach and innovative investments. Investment Analyst, Alexander Tjiang, focuses on event-driven and behavioral finance.

The challenge

Like many analysts, to prepare for each earnings season, Alexander is tasked with reading past management sentiment, company transcripts and equity research reports to identify the accuracy of consensus for each of the 20 companies he covers. The task of preparation alone can be a days-long process, followed by the calls themselves, which spurs a whole new research and discovery process including:

  • Line by line read-throughs: Alexander spends a lot of time reading through every line of earnings transcripts to understand key themes and changes in management tone
  • Evaluating nuances in language and sentiment: Minor inflections in tone and variances in language are something Alexander looks at for each call
  • Updating models: pulling financial data to update models with the most recent information available
  • Provide recommendations to management: Alexander delivers a presentation of his findings and recommendations to his PM after thorough analysis

In order to successfully navigate earnings season and keep up with the pace of the market, Alexander sought a solution that would allow him to automate much of his research process and access all the documents he needed within one platform.

This earnings season was huge using AlphaSense. It was phenomenal, it took a matter of minutes to go through a company and get smart, quick.”

Alexander Tjiang
Investment Analyst

Results

His investment in AlphaSense is already paying off. “Having everything in one place is a game-changer,” Alexander noted. During earnings season, he is now able to consolidate much of his research process within the platform and save time by leveraging many of AlphaSense’s workflow features:

  • Black-lining: “The black-lining feature is really important. It allows me to automatically identify any QoQ changes in SEC filings”, says Alexander. In particular, he focuses on changes within the auditor’s statement, accounting footnotes and risk sections
  • Table Export: Alexander relies on table extraction to seamlessly export financial data into Excel, allowing him to spend more time on analysis, rather than manually updating numbers
  • Theme Extraction and Sentiment: Being able to identify positive and negative tone with Sentiment allows Alexander to hone in on the inflection points of each call. He also likes that the automated insights on theme extraction allows him “the opportunity to ask more questions that [he] may not have considered.”

In automating much of his earnings prep, Alexander has saved “probably 25% of the grunt work”, freeing his time to work on analyzing his findings, refining his strategy and formulating opinions. “This earnings season was huge using AlphaSense. It was phenomenal, it took a matter of minutes to go through a company and get smart, quick.”

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