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All Rights Reserved Damien Kopp 2018 Investment Decisions Creating A Competitive Edge Using Big Data & Machine Intelligence By Damien Kopp February 2018 1

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All Rights Reserved Damien Kopp 2018

Investment DecisionsCreating A Competitive Edge Using Big

Data & Machine IntelligenceBy Damien Kopp February 2018

1

All Rights Reserved Damien Kopp 2018

“The most valuable commodity I know of is information” – Gordon Gekko, Wall Street

All Rights Reserved Damien Kopp 2018

Every Day…

4,000 brokerage reports a day comprising 36,000pages in 53 languages

Source: Blackrock Alternative Data Report

All Rights Reserved Damien Kopp 2018

Every Minute…Email users send 204,000,000 messages

Google receives over 3,600,000 search queries

Twitter users tweet 456,000 times

Amazon makes $258,000 in sales

Skype users make 154,200 calls

People send 15,220,700 texts

Source: DOMO Data Never Sleeps 5.0

All Rights Reserved Damien Kopp 2018

Drowning In An Ocean Of Digital InformationVolume

Velocity

VarietyVeracity

Value

All Rights Reserved Damien Kopp 2018

New Hype: Alternate Data

Sensor Data• Location, Power,

Temperature, Pressure, Speed,

• GPS and Mobile Devices, RFID

System DataLog files, Device records, SNMP MIBs

Service DataUsage log files, transactions, Internet, other

Social DataBlogs, videos, clickstreams,

images

All Rights Reserved Damien Kopp 2018

Making Sense Of The Noise

All Rights Reserved Damien Kopp 2018

How to create value-generating signals?

§Robotics via intelligent workflow automation

§Data source enrichment with alternative datasets

§ Investment decision-making process mapping

All Rights Reserved Damien Kopp 2018

Machines Can Read, Comprehend, Curate, Distil Information At Precision Scale

1. Ingest oceans of data2. Generate insights from algorithms that enhance Capital Markets intimacy and embed deep understanding of a company metrics.3. Deliver Insights in bite sizes facilitating easy consumption and rapid action, blending into a workforce day to day workflow.

Loans

Intelligence

Engine

���

Delivering the right insight at the right place at the right time to the right person

All Rights Reserved Damien Kopp 2018

Symphony WechatEikon APIsSalesforce AppsSlack EmailFidessa Multicast

Accounting Market Driven

Forecast Anticipation Behavioural Corporate Actions

Macro Senstivity

KPI Dashboard

Outcome Monitoring

Management Reports

Usage Statistics

Profiles Research News Annual Reports

Analyst Transcripts

Investor/ PrWires Social Media

From Data To Insights, To Decision To Action

All Rights Reserved Damien Kopp 2018

Machine-read Like An Investor

Take Pictures and Decode

Meaning

Machine Intelligence(Reading Literally & On the Line)

Extract “Key Capital Markets

Content”

Artificial Intelligence(Reading Between the Lines)

Parsing & Segmentation

Intelligent Tagging & Sentiment Concept Expansion Identifying Exactly

HOW it mattersEvent Extraction Identifying Exactly WHAT Matters

Relationships of Events andEntities to Capital Markets

This Delivers Utility Scale This Delivers Intelligence, Depth and Scale This Delivers Sustainable Investment Edge

All Rights Reserved Damien Kopp 2018

China Capital Markets: A Unique Opportunity

• Inclusion of Chinese A Shares in MSCI indices

• Expected US$ 400bn* in inflows in near future

• Low foreign institutional ownership

• Market inefficiency

• Lack of confidence of overseas investors

*BlackRock Estimates

All Rights Reserved Damien Kopp 2018

Machine-Read English & Mandarin like a Capital Market Professional

Successfully predicted abnormal price moves on Chinese securities even where the target company was not mentioned in the content.

Machine Learning

Mandarin parsing and segmentation engine

Capital Markets specific event extraction

Artificial Intelligence (AI)

AI Concept Expansion – The ability to understand BETWEEN and BEHIND the lines

like a capital markets expert

All Rights Reserved Damien Kopp 2018

Achieve cost reduction via intelligent automation

Value Capture Value Creation

Create differentiation via information asymmetry andsuperior decision making

process

+

Magic Formula

All Rights Reserved Damien Kopp 2018

Thank YouDamien KoppHead Of ProductsBlue Fire AI Pte Ltd.

Email: [email protected]: +65 866 13403LinkedIn: https://www.linkedin.com/in/damienkopp/