ExtractAlpha Company Profile

Background

Overview

ExtractAlpha, founded in 2013 by Vinesh Jha, is an independent research firm specializing in providing unique, actionable alpha signals to institutional investors. The company leverages extensive experience in quantitative analysis and the design of investment analytics products to identify and deliver value from alternative datasets. By transforming raw data into actionable intelligence, ExtractAlpha aims to help clients gain a measurable edge over their competitors.

Mission and Vision

ExtractAlpha's mission is to bring analytical rigor to the analysis and marketing of new datasets for the capital markets. The vision is to empower institutional investors with innovative, predictive signals derived from alternative data sources, thereby enhancing investment decision-making processes.

Primary Area of Focus

The company focuses on sourcing, evaluating, cleaning, analyzing, and productizing alternative datasets to provide institutional-grade data feeds and predictive models. Their offerings include earnings and revenue surprise forecasts, sentiment signals, institutional trading activities, and more.

Industry Significance

ExtractAlpha has been recognized as a leading provider in the alternative data space, winning multiple awards such as the Best Alternative Data Provider in 2022 and 2023. Their innovative approach to alternative data has set a benchmark for quality and reliability in the industry.

Key Strategic Focus

Core Objectives

Data Quality and Validation: Ensuring that all datasets have validated alpha and are ready for testing.

Comprehensive Coverage: Providing historical data ranging from years to decades, covering most US equities plus nearly 30,000 global securities.

Client Support: Offering white papers, data dictionaries, and full methodology descriptions to assist clients in implementation.

Specific Areas of Specialization

Alternative Data Signals: Developing unique, accurate, and reliable data sources that are cleaned, validated, and ready for use.

Quantitative Research: Applying expertise in NLP and AI to dataset development, enhancing predictive capabilities.

Client Success: Providing deep customer success guidance and advice to ensure effective utilization of data.

Key Technologies Utilized

Natural Language Processing (NLP): For analyzing unstructured data sources.

Artificial Intelligence (AI): To enhance predictive modeling and signal generation.

Machine Learning: For continuous improvement of data analysis and forecasting accuracy.

Primary Markets Targeted

ExtractAlpha primarily serves institutional investors, including hedge funds, asset management firms, and quantitative trading desks, across the U.S., EMEA, and Asia Pacific regions.

Financials and Funding

Funding History

ExtractAlpha has been privately funded since its inception in 2013. Specific details regarding total funds raised and recent funding rounds are not publicly disclosed. The company has strategically focused on organic growth and partnerships to expand its offerings and market presence.

Notable Investors

While specific investor information is not publicly available, ExtractAlpha has established significant partnerships with leading financial and fintech data firms, enhancing its data offerings and market reach.

Utilization of Capital

Capital has been utilized to:

Expand Data Offerings: Acquiring platforms like ESG Analytics to enhance ESG data capabilities.

Develop Advanced Models: Investing in the creation of predictive models such as TrueBeats for earnings and revenue forecasts.

Enhance Client Platforms: Partnering with platforms like Exabel to provide clients with advanced data insights.

Pipeline Development

Key Pipeline Candidates

TrueBeats: An earnings prediction signal that outperforms standard forecast models by 80%, providing early indicators of earnings and revenue surprises.

Digital Revenue Signal (DRS): Measures digital footprints to predict revenue surprises and growth, covering 8,500 global stocks with 10 years of history.

Stages of Development

Both TrueBeats and DRS are fully developed and available to clients, with continuous enhancements to improve predictive accuracy and data coverage.

Target Conditions

These models are designed to provide insights into earnings and revenue performance across a wide range of global equities, assisting investors in making informed decisions.

Anticipated Milestones

Ongoing updates and refinements are planned to incorporate new data sources and improve model accuracy, with regular releases to clients.

Technological Platform and Innovation

Proprietary Technologies

TrueBeats: A proprietary earnings prediction model that integrates various data sources to forecast earnings and revenue surprises.

Digital Revenue Signal (DRS): A model that analyzes digital footprints to predict revenue performance, utilizing web traffic, social media, and search engine data.

Significant Scientific Methods

Natural Language Processing (NLP): Applied to analyze unstructured data sources, enhancing the extraction of actionable insights.

Artificial Intelligence (AI): Utilized in predictive modeling to improve the accuracy and reliability of forecasts.

Machine Learning: Employed for continuous model refinement and adaptation to new data patterns.

Leadership Team

Vinesh Jha – CEO and Founder

Vinesh founded ExtractAlpha in 2013 with the mission of bringing analytical rigor to the analysis and marketing of new datasets for the capital markets. Prior to ExtractAlpha, he was the Director of Quantitative Research at StarMine and held positions at Merrill Lynch and Morgan Stanley. He holds degrees from the University of Chicago and the University of Cambridge.

Alan Kwan – Research Advisor

Alan joined ExtractAlpha in 2024 as a tenured associate professor of finance at the University of Hong Kong. He specializes in big data and alternative datasets, with a PhD from Cornell University.

Janette Ho – Head of Relationship Management, Asia-Pacific

With over 22 years of experience in FinTech and analytics sales, Janette has held leadership roles at Moody’s Analytics, State Street, and Thomson Reuters.

Qayyum Rajan – Head of EA Labs

Qayyum, known as "Q," joined ExtractAlpha in 2024 to lead EA Labs. He has a background in fintech and venture building, having co-founded iComply Investor Services and ESG Analytics.

Yunan Liu, PhD – Quantitative Research Director

Yunan joined ExtractAlpha in 2019, specializing in empirical asset pricing and mergers & acquisitions. He holds a PhD from The University of Hong Kong.

Willett Bird, CFA – Chief Revenue Officer

Willett joined ExtractAlpha in 2022, bringing experience from Vidrio Financial, FIS Global, and FactSet. He holds an MBA from Northwestern University and the Hong Kong University of Science and Technology.

Leadership Changes

In 2024, ExtractAlpha expanded its leadership team with the addition of Alan Kwan as Research Advisor and Qayyum Rajan as Head of EA Labs, reflecting the company's commitment to enhancing its research capabilities and innovation.

Competitor Profile

Market Insights and Dynamics

The alternative data industry is experiencing rapid growth, driven by increasing demand for non-traditional data sources to inform investment decisions. Key trends include the integration of AI and machine learning in data analysis and a focus on ESG (Environmental, Social, and Governance) data.

Competitor Analysis

ExtractAlpha faces competition from several companies in the alternative data space, including: