Fraud Factors

We are deeply passionate in the area of corporate governance. We believe governance has a positive correlation to firms’ medium to long term profitability and resulting stock performance. At Fraud Factors, we leverage machine learning and natural language processing techniques to uncover corporate governance issues before they play out in its full form. For our investment management clients, these data sets are a potential source of alpha that is uncorrelated to market returns. Our clients make use of these insights to adjust their investment exposure based on firms’ underlying corporate governance reality. Taken at scale, these adjustments increase capital allocation efficiency in the area of corporate governance, one of the three pillars of ESG investing.