kbennatti

7 ms·

1.
by kbennatti 3y ago
Love this!
2.
by kbennatti 4y ago
My personal experience supports a lot of this. I’ve become more practical and less idealistic with age and that’s mostly been a great thing for me.
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by kbennatti 5y ago
See response above. And not just fraud detection. We plan to expand to other areas including credit/bankruptcy, ESG and tracking macro changes and trends
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by kbennatti 5y ago
A few reasons but the primary one is impact. Our mission is corporate accountability through information transparency. Once you become a hedge fund your incentives for information dissemination become warped.
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by kbennatti 5y ago
We don't sell to filers. Ever. Got to protect against conflicts of interest. That's one of the reasons we don't have a true free version of the product. That said, we're using language models so replacing words with syno
6.
by kbennatti 5y ago
We love footnoted! Michelle Leder of footnoted has been really supportive of our work. She recognizes that it's an important area for tech innovation. footnoted isn't operating right now but when it comes back, we'll support
7.
by kbennatti 5y ago
Yeah, people have been doing sentiment analysis of press releases etc for years now and very few corporates bother trying to use software to test/counteract it
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by kbennatti 5y ago
You've hit the nail on the head (mostly)...but I'm going to say no more because its part of our secret sauce
9.
by kbennatti 5y ago
I love that. I agree until the "nothing" bit. Some things do get priced in. You can see specific stocks "react" to news, adjusted for market returns etc. ESG factors do appear to be getting "priced in" as well
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by kbennatti 5y ago
Seconding Suhas here. Super rad
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by kbennatti 5y ago
So true
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by kbennatti 5y ago
It's disclosed in their filings e.g. "Among the vendors were a director of the Company and an entity controlled by such director" At lot of egregious things are disclosed on page 101 of a filing but they get missed because th
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by kbennatti 5y ago
Thanks for website edit! Fixed. We don't rely on XBRL for parsing. It's not very consistent/reliable and its mostly for numeric content. We've definitely considered integrating ratios both into our dashboard. It isn&#x27
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by kbennatti 5y ago
Aw cool! Can I hang out with your Dad? ;) We do pick up on overly promotional/jargon-y language to some extent. For the most part, however, word lists haven't worked for us.
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by kbennatti 5y ago
just a sample
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by kbennatti 5y ago
in-kind services is always a red flag because it's easy to fudge the accounting
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by kbennatti 5y ago
Nikola red flags for you! (all algorithmic) 1. "For example, in September 2020, our founder and former executive chairman, Trevor R. Milton, stepped down from his positions with us." 2. "During the fourth quarter of 2020, the
18.
by kbennatti 5y ago
Yes, it did. BUT here's the thing -> Nikola was first a SPAC and by the time it filed its first filing as Nikola, the Hidenburg report was already out so its not a true example of our algorithms preceding short reports. Our algos di
19.
by kbennatti 5y ago
Ooh I love MTL. That's the first place I lived in Canada. Great q. We used SEC enforcement actions related to fraud as our gold label (fairly common practice in academia). Really key thing here is that you need to be careful about what
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by kbennatti 5y ago
Interesting. Potentially? How do we get in touch?
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by kbennatti 5y ago
Our product has two very distinct outputs 1) red flags and 2) a risk score. Our primary value-add is the red flags which are a qualitative input into an analysts process. We find the information you need to see without having to spend 3 hou
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by kbennatti 5y ago
We don't sell to filers. Ever. Got to protect against conflicts of interest. That's one of the reasons we don't have a true free version of the product. That said, we're using language models so replacing words with syno
23.
by kbennatti 5y ago
Or this? John Rohner, claimed that he'd developed tested and patented a "plasma engine" fueled by inexpensive and abundant noble gasses. He also claiming that he graduated from Harvard at 14 and had 3 Phds from M.I.T. Someho
24.
by kbennatti 5y ago
Like this? This Oxford City Football team, a boiler room operation, duped people by saying that they were bound by a voice recognition and proved it by using the phone to make some beeping sounds. https://www.sec.gov/litigat
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by kbennatti 5y ago
Re: alpha -> our focus is on extracting red flags that are similar to what a forensic accountant/analyst would find. AI-assisted research rather than AI driven. trading on fraud signals alone is pretty hard, you need another event.
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by kbennatti 5y ago
RE: backtesting we use SEC enforcement actions related to fraud (10b-5) as our gold label. That said, there is no gold label for absence of fraud so our backtested metrics are probably slightly better than they seem. We've never tried
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by kbennatti 5y ago
> Humans too, you're describing at least one comment in every HN thread about an SEC filing :D LOL. Yup!
28.
by kbennatti 5y ago
Great q. Sino-Forest is an out-of-sample test so our models didn't technically "learn" from it. That said, very valid comment. Historical testing only goes so far. Assessing whether our algorithms work in deployment has been
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by kbennatti 5y ago
Sweet! The world needs a Bloomberg alternative so props. We don't have an API atm. We're focused on supporting human analysts. The meat of the product is the red flags which are textual and not quantitative.
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Launch HN: Bedrock AI (YC S21) – Using ML to identify red flags in SEC filings
183 points by kbennatti 5y ago|107 comments

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