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'Doing The Impossible': FREĠNAN Leverages AI, Small Data To Produce Trading Insights

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'Doing The Impossible': FREĠNAN Leverages AI, Small Data To Produce Trading Insights

FREĠNAN, an artificial intelligence-driven investment research tool, leverages small data to create industry-leading financial models and risk assessments, CEO Vince Julier told Benzinga in an interview. 

About The CEO 

Julier, a director and founder at FREĠNAN, worked in commercial management, group planning, and finance at BP plc (NYSE: BP) for more than 20 years.

He founded two private equity and financial advisory firms, and was Assistant Keeper of the Privy Purse in Queen Elizabeth II's royal household.

“I started the company with the hypothesis that I apply these techniques to equities and equity research," he said of artificial intelligence and economic valuation methodologies. 

What Is FREĠNAN?

Investment managers are negatively impacted by cost and regulation.

The passing of MiFID II, or Markets in Financial Instruments Directive — a law designed to increase transparency in European capital markets — reduced information asymmetries and increased industry research costs, Julier said. 

In a defensive move, FREĠNAN capitalized on new tech and changing market infrastructure, the CEO said. 

The firm leveraged AI and machine learning to exploit research inefficiencies and derive actionable insights for the financial services industry.

The firm's focus is to deliver unbiased forecasts and performance insights for companies and financial assets, Julier told Benzinga. 

How The Platform Works

The FREĠNAN analytics engine intakes company financials and runs machine learning processes to create predictive financial models that can be consumed via multiple channels.

The engine derives relationships between company account line items, testing and connecting produced models to external data via web harvesting.

The output material is intended for use in investment analysis and risk assessments, and the information is useful for forecasting, auditing and valuation purposes, Julier said. 

The platform is so sophisticated that it can produce a 400-line financial model in less than 2 minutes, he said. 

Next Steps

“I think what we are doing is going to be changing the industry,” Julier said.

Most other firms look at big data, but FREĠNAN derives useful insights from small data, he said. 

"We got small data and it’s doing what people think is impossible to do, which is producing useful insights."

FREĠNAN plans to launch a beta product, and Julier said the next step is to deliver fixed-income insights to investment banks.

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