Below is our recent interview with Tomás Diago, the Founder and CEO of Danel Capital:
Q: Tomás, can you provide a brief overview of how Danel Capital functions?
A: Danel Capital uses Artificial Intelligence and Big Data to improve asset management decision-making. Danel Capital advises investment funds and offers stock analytics solutions and services, which allow managers to improve the selection of stocks and the optimization of their portfolios.
Q: Aren’t other companies already doing this? What makes Danel Capital unique?
A: There are many companies rating stocks in different ways to help institutional investors make better investment decisions. We are unique in the sense that we integrate a huge amount of information available from stocks (more than 900 technical, fundamental, sentiment, alternative data points) into scores from 1 to 10 that summarize the probability for each stock to outperform the market. Apart from the daily data that we already have for each stock, we can also integrate alternative data from clients to customize their scores.
Q: What’s the most crucial thing about Danel Capital that people might not know about?
A: Even though we´re using Machine Learning algorithms to understand the dynamics of alpha generation (market outperformance), the stock scores we produce are not based on a “black box” since we provide the alpha signals behind each score. We identify the technical, fundamental and sentiment signals or indicators that are behind a stock score every day.
On the other hand, our stock scores are not suitable for trading short term, they are more convenient for portfolio management since the market outperformance is targeted to 4 months.
Q: Who is your ideal client and why?
A: Institutional investors are our ideal client, we help them generate alpha (market outperformance) within the stock funds they manage.
Q: Any last thoughts?
A: We believe in Paul Tudor Jones vision “No man is better than a machine, and no machine is better than a man with a machine” when referring to investment decisions. Artificial Intelligence and Big Data technologies allows us to fulfill this vision.