This results from five years of work, with semi-automated mass reading of hundreds of thousands of financial documents. Its purpose is to reduce the complexity of the investment universe and pinpoint factors that create value for a company. It seeks to encompass 12 000 listed companies across the world, broken down into more than 300 clusters of businesses with comparable operational profiles. Automated mass reading of financial documents (broker research, annual reports, sectoral studies, etc.) allows us to allocate SPECIFIC KEY PERFORMANCE INDICATORS (KPI) for each of the clusters and a VALUATION METHOD sanctioned by the financial community
The global economic fabric (of listed companies), thus organised in interconnected clusters, allows us to:
Categorise companies according to the quality and momentum of their KPIs
Gain a clear understanding of value chains
Pick up upstream and downstream signals about the target company by processing growing numbers of corporate releases
And therefore generate lists of companies on which to focus our analysis efforts
Why monitor companies around the world if we only invest in Europe?
Because European companies are woven into the globalized economic fabric. The market price of memory chips made by Samsung (a Korean company) has effects on profit margins at Technicolor (a French company) as well as Cisco (a US company). And who said we were going to limit ourselves to European businesses? Pléiade AM has ambitions!