[Product Release] Q4 launches next generation investor targeting driven by AI
6 June 2018
By Adam Frederick
Game-changing AI Targeting tool predicts investor behavior & matches buyers/sellers.
Early this year, Q4 introduced its artificial intelligence (AI) engine, iris, designed to revolutionize the world of Investor Relations. The initial iteration of iris’ groundbreaking technology was to tackle real-time shareholder identification.
Today, we’re excited to introduce our second iris release, AI Targeting: the most advanced investor targeting solution the industry has ever seen. Leveraging iris’ deep capital markets intelligence and machine learning capabilities, this cutting-edge technology will transform how IR teams target new investors for their stock.
While traditional, “smart” targeting solutions have been around for years, they are restricted in that they focus on fundamental analysis or sector comparisons in order to identify investors best fit for any stock. Built long before big data and AI, these systems come up short in today’s market because they are based on how well the stated portfolio strategy of the fund matches a company’s stock.
The revolutionary aspect of AI Targeting, and where it drives real value for public companies and investors, is its ability to accurately predict which firms or funds have the highest probability of purchasing and selling a given security within the next 90 days. Additionally, AI Targeting provides the most important underlying investment drivers specific to that firm/fund and your company, arming you with key talking points tailored to your audiences. Nothing this powerful and robust has ever hit the capital markets before.
The model, which is updated weekly, consists of roughly 700 individual factors in total and focuses on 5 key areas: balance sheet, income statement, cash flow statement, valuation ratios and trading analysis.
What’s more, the technology takes into account the buying/selling probability of investors, alongside their overall quality. IROs can now ensure optimal outreach efforts, putting senior management in front of not only the most likely but the “best” buyers.
The first of its kind, AI Targeting predicts investor behaviors and tendencies by:
- Calculating probabilities and matching these scores between firms, funds and stocks
- Analyzing and rating targets based on company fundamentals, market flows, investor profiles, historical patterns, and current trading activity
- Uncovering key investment drivers specific to each firm/fund and your company
Matching the right investors at the right time for corporates
Understanding the main investment attractors (and detractors) for a given firm/fund (specific to your company), and the economic impact to your EV, represents a tectonic shift in the investor targeting paradigm. By helping IR teams identify the best investors at the most opportune (ready to buy) moments, AI Targeting dramatically improves targeting and outreach efforts.
The reach of AI Targeting goes beyond simply identifying the best targets and helps bridge the gap between issuer and investor, via corporate access. With the advent of MiFID II in Europe and its far-reaching implications across the globe, the way corporates interact with the buy-side is radically changing. We continue to see sell-side coverage shrink, the quality of NDR and conference meetings dwindle, along with a diminished demand for bulge bracket research from the buy-side. The burden of corporate access is increasingly falling on the shoulders of corporates.
With AI Targeting, IROs can put their best foot forward in the outreach process and vastly improve the ROI on their marketing efforts. It effectively empowers IR professionals with real-time actionable intelligence, to enhance the effectiveness and efficiency of their shareholder engagement.
Adam Frederick is the Senior Vice President of Intelligence at Q4 Inc and blogs regularly on market commentary.