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Investment Robots Are Listening to CEOs and Reading Your Twitter Feed

  • Systematic funds mine alternative data for trading signals
  • Patents, auditor changes, news stories all dissected for alpha
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In less than a decade, Danske Bank A/S changed auditors four times before a $230 billion money-laundering scandal hammered its share price.

It’s those type of red flags that PanAgora Asset Management Inc. wishes its factor-investing models could capture. So now it’s trained them to. The Boston firm has programmed robots to look beyond financial statements and market prices, trying to adapt cutting-edge data science to a brand of quant trading that before now had little use for it.