OWL Analytics is an alternative data company that focuses on environmental, social, and governance (ESG) research. OWL helps investors integrate ESG data into their investment solutions with the goal of delivering enhanced investment results and positive social impact compared to benchmarks.
Neuravest and OWL Analytics have partnered to unlock value in Owl’s ESG ratings. OWL employs a “wisdom of the crowd” approach to reduce the well-known inherent subjectivity of single viewpoint ESG ratings. To do this, OWL aggregates hundreds of sources of ESG data, research and ratings with the goal of identifying which ESG metrics each source deems relevant for each industry. OWL then rates each company in an industry across a number of high-level metrics based on that industry’s consensus ESG model.
Neuravest constructs portfolios that combine the absolute OWL E,S, G scores with the relative change in these scores from a year earlier. This way we select companies with the best sustainability profiles which have also improved their scores the most in the last 12 months. The AI classification engine further narrows the selection of stocks that enter into the portfolio. The portfolio construction technique then optimizes the turnover in the portfolio such as to include the stocks with the highest expected return while targeting turnover level that most investors would find reasonable.
Investing to align with mission and values while also extracting alpha requires tapping unique alternative datasets and harnessing machine learning techniques.
Example:
Monday = Consumer swipes card to make purchase
Wednesday = Neuravest implements fresh data into models
Through our strategic data partnership with OWL ESG, Neuravest licenses thematic portfolios to institutional investors seeking equity alpha. Neuravest can deliver a portfolio unique to your firm and risk mandate – optimizing for specific dynamics such as portfolio turnover and volatility constraints.
The rise of ESG awareness amongst corporate management and investors has been undeniable, with more than $300 billion allocated specifically to sustainable funds as of mid-2021, just in the United States.
However, allocating capital according to missions and values often results in below benchmark returns.
Our Objective is to Deliver a Strong Consumer Transaction Portfolio With Above Market Returns While Maintaining a Market-Like Risk Profile
