Calculus Capital has completed a £2.5m investment in Essentia Analytics, a FinTech (financial technology) company, based in London and New York. Its flagship service, Essentia Insight, applies behavioural analytics to help professional asset managers make measurably better decisions, by providing a powerful and continuous feedback loop.
Essentia Analytics was founded by professional portfolio manager Clare Flynn Levy to provide decision analytics in order to improve the performance of asset managers.
Essentia’s proprietary software conducts a full algorithmic analysis, using machine learning of all past investment decisions, to identify each individual portfolio manager’s behavioural biases. The software then continuously monitors their portfolio including individual stock performance and trading and creates proactive behavioural nudges to help the fund manager improve their alpha performance. Quarterly consultation sessions with a professional portfolio manager coach to agree behavioural change efforts and manage progress at an individual and team level.
The investment will be used by Essentia Analytics to expand their product offering, in particular for asset allocators (CIOs), and to drive growth by strengthening the US and European sales and marketing capability.
Clare Flynn-Levy, Essentia Analytics CEO says “We are delighted to have Calculus on board as an investor. Their investment and expertise come at a crucial time for us to be growing and developing our product, due to the increasing pressure for asset managers to prove their alpha and improve performance. We are very much looking forward to working together more closely.”