Increase Alpha's Sid Ghatak Builds Predictive Stock Market Tools And Eyes Fund Launch

Increase Alpha Founder and Chief Data Officer Sid Ghatak is building tools to trade markets profitably in any market environment. After an elaborate study, he tells Benzinga he will go to market with a proprietary fund attracting external investment.

“The potential for this new venture is boundless,” Ghatak adds, noting that there were times during the study when his tools would outperform the S&P 500. “We were up 13% while the S&P 500 was down 10% over 18 months; an extensive coverage list and correlation with the indexes and futures markets allows for effective hedging and trading opportunities.”

The single father of three who spent the better part of two decades building technology for firms such as JPMorgan, Thomson Reuters Corporation TRI, and Northrop Grumman, says he is passionate about using data to impact. For instance, his work with Thomson Reuters powers upwards of $3 trillion in mergers and acquisitions activity annually. That’s in addition to his teaching at schools like Villanova University or guiding groups like the federal government’s 10x and the Federal Reserve.

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The venture manifested after Ghatak read an article about how there may be hidden trading signals in the SEC filings of public companies. He tapped into his knowledge of stockbroking and business school, learned to code, and developed a set of metrics that reliably predict stock price movements 10 days or so in advance.

“The latest tests have proven in production what my experiments showed,” Ghatak wrote in a LinkedIn post about his experience building the stock price forecasting model. “Knowing what it could do made me ask myself who would be willing to pay for it and how much.”

To fund operations, Ghatak intends to make his insights available to retail and institutional investors as well, the latter of which are customers of what’s known as the alternative data industry, which is “projected to grow at a 52% CAGR from $4 billion today to $126 billion by 2030.” Ghatak partnered with an IP licensing and marketing firm to start selling the insights.

“I am determined to pursue this endeavor, regardless of its potential for generating immense wealth,” he said. Ghatak also acknowledged that there may be hurdles in selling to large institutions that have invested heavily in their own teams of experts. “I differentiate myself by not relying on news sentiment analysis, commonly used by others; instead, I employ a unique proprietary dataset and combine it with market data to generate highly accurate predictions. This entirely new set of predictive data is a selling point.”

Connect with Sid Ghatak to learn more about these predictive insights or investing in his fund.

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