Process. Discipline. Self-Awareness.Skill-Based Investing.
All professional investors share a fundamental problem: they are selling skill, but getting paid for performance.
Unfortunately, the two are not the same. Performance is not a measure of skill – it’s a measure of outcome.
Skill is a function of the decisions we make, both consciously and unconsciously. Conscious decisions can be improved by implementing process in a disciplined way. Unconscious decisions are trickier – sometimes they are the secret of our success and sometimes they are our own worst enemy. Optimising the influence of the unconscious begins with self-awareness.
Process. Discipline. Self-Awareness.
They form the foundation of what we call Skill-Based Investing.
Essentia’s decision support software enables fund managers to capture richer data about their own behaviour, while improving the productivity and referenceability of their investment processes. A more accurate picture of the past enables better conscious decisions in the future.
Meanwhile, our data scientists identify behavioural patterns and correlations, and reveal actionable insights, enabling awareness of the unconscious influences.
Finally, our Coaching Partners help fund managers convert that awareness into behavioural change, increasing the probability of success.
Excellence demands a feedback loop. Essentia supplies one.
Security is at the heart of everything we do.
Essentia’s innovative data security architecture means that although it’s accessible anytime, anywhere via the Cloud, our clients remain in control of their own data at all times. YOU hold the keys, not us.
What that means for you: The client remains in control of its data at all times. The client can switch off Essentia’s access to its data at any time. Only the client is in a position to provide third parties with access to its data.
Excellence Demands a Feedback Loop.This is The Essentia Process.
Analyse Behavioural Patterns
Starting with the simple trade-level data that fund management firms already collect, Essentia identifies patterns in the way a portfolio manager invests, and enables the distinction between luck and the various aspects of investment skill.
Provide Clear, Actionable Insights
We convert the patterns we detect into intelligible insights that the portfolio manager can intuitively understand and actively use to adapt his or her behaviour. No Ph.D. required.
Coach Toward Behavioural Change
Essentia’s coaches meet with portfolio managers at regular intervals for confidential discussions about what the data is revealing. Whatever the portfolio manager wants to change, the coach is there to help make it happen.
Use Technology to Improve Process & Discipline
Essentia’s decision support software has been specifically created to assist portfolio managers in executing and improving upon their own investment processes. We keep it simple and minimize additional work – the idea is to make life easier, not harder.
Capture Richer Data
The more that professional investors use Essentia, the more insights we can feed back to them. It’s about capturing data on not only what their investment decisions are, but why they’re making them.
The Essentia Process is about continuous improvement in skill. In the long term, the investors with the most skill win.
World Class Scientists, Technologists and Practitioners. Leading Edge Software That is Fit-for-Purpose.
Essentia’s leadership team is driven by a shared passion for using technology to empower profitable
investment decisions, and a shared obsession with the user experience.
We’re the real deal: ex-fund managers, neuroscientists, and industry-leading software engineers.
We understand portfolio managers’ pain, and the potential solutions to it, like no one else can.
Essentia is actively recruiting highly talented technologists, data scientists and relationship managers. We love our work and we take our culture seriously. Visit our careers page if you’re interested in joining us.
Clare Flynn Levy Founder / CEO
Prior to founding Essentia, Clare spent 10 years as a fund manager, both active equity – running over $1bn of pension funds for Deutsche Asset Management – and hedge – as founder and CIO of Avocet Capital Management, a specialist tech fund manager. She ultimately “went native” into the software space as President of Beauchamp Financial Technology, a market-leading provider of portfolio management systems to hedge funds, which was acquired by Linedata Services S.A. Clare’s vision for Essentia is based on years of being the customer, followed by years of listening to the customer.
Imad Riachi, PhD Chief Scientist
A multi-disciplinary scientist with expertise in complex systems modeling/simulations, machine learning and big data, Imad has a Ph.D. in Neuroscience, an M.Sc. in Robotics, a B.E. in Computer Engineering, and publications across disciplines. He was a core member of the Blue Brain Project, which evolved into the Human Brain Consortium, receiving from the EU in 2013, the largest research excellence award in history. He joined Essentia from Goldman Sachs, where he was a strategist and an algo trading quant.
Tom Abraham Advisory Board
Tom Abraham is the former CEO of DST Global Solutions, a market-leading provider of technology to asset and wealth managers. His career in financial services and technology spans over 30 years, including senior roles with Accenture, Deutsche Bank and Citi. He is a prominent member of several industry groups and the author of a number of articles.
Dr. Mark Fenton-O’Creevy Advisory Board
Dr. Fenton-O’Creevy is Associate Dean of Strategy and Head of Organisational Psychology at The Open University Business School. An acknowledged authority in the field of Behavioural Finance, in 2012, he completed the xDelia project, a large cross-European research effort focused on improving our understanding of the role played by emotion in financial decision-making by investors and professional traders and developing new, technologically supported, approaches to enhancing the quality of financial decisions.
Dr. Tomas Chamorro-Premuzic Advisory Board
Dr. Chamorro-Premuzic is an international authority in psychological profiling, consumer analytics, and talent management. He is currently a Professor of Business Psychology at University College London (UCL) and Vice President of Research and Innovation at Hogan Assessment Systems. He has published over 100 scientific papers and 8 books, including Confidence (just released).
Kevin Eyres Non-Executive Director
Kevin was LinkedIn’s first employee outside the US, and as Managing Director EMEA, he developed its international strategy from scratch, led the company into 8 countries, and played an instrumental role in the growth of the member base from 14m to over 100m by April 2011. He ranked 22nd in Wired Magazine’s “Wired 100” list in 2010. Post LinkedIn’s IPO, Kevin is an active angel investor and philanthropist.
Charles D. Ellis Non-Executive Director
Charles Ellis is an investment consultant and writer who is known for his philosophy of investing through index funds; his book “Winning the Loser’s Game” has sold over a million copies.
Ellis was the Founder of Greenwich Associates, an international strategic consulting firm focused on financial institutions, where he served as Managing Partner for 30 years. He has been appointed to the faculties of both Harvard Business School and the Yale School of Management, has served on the Board of Directors at Harvard Business School, chaired Yale University’s investment committee, and has served as Finance Chair for Robert Wood Johnson Foundation and as Chairman of the Board of the Institute of Chartered Financial Analysts.
Peter Clarke Non-Executive Director
Peter Clarke was as CEO of the Man Group for five years, before retiring in 2013. He currently serves as: Non-Executive Director of AXA Investment Management SA and Chairman of their UK Boards; Non-Executive Director of Lombard Odier Investment Management; Non-Executive Director of Lancashire Holdings Insurance; and Chairman of the National Teaching Awards Trust.
Essentia in the News
- Simcorp Journal of Applied IT 13 May 2015 - Feature article by Clare Flynn Levy and Eric Rovick exploring with worked examples how behavioural science and data are coming together to help active management confront its demons.
- The Times 5 May 2015 - US Business Editor, Alexandra Frean, looks at how active managers are using Essentia to integrate behavioural finance into their everyday investment workflows.
- The Guardian – Startup of the Year 22 April 2015 - Essentia named a Guardian Startup of the Year 2014.
- Barron’s 7 April 2015 - Barron’s Penta Daily explores how family offices are now using Essentia to hone process and increase performance.
- CIOReview name Essentia as one of Most Promising Capital Market Technology Solution Providers 28 March 2015 - Recognition for Essentia’s role in bringing advanced behavioural analytics to the asset management industry.
- eFinancialCareers 27 March 2015 - How technology is helping human fund managers go toe-to-toe with their quant competitors.
Coaching. It's More Effective With Data.
Have you ever heard of an olympic medalist who didn’t have a coach? Neither have we.
Professional athletes use coaches to help them internalise behavioural change. Coaches use data to measure opportunities and results.
The world’s top fund manager and trader coaches can now use Essentia’s software to take their services, and their ability to help their clients, to the next level, through our Certified Coaching Partners Programme.
Essentia clients can choose from a roster of carefully-vetted, thoroughly trained coaches with vast experience of helping professional investors make more money.
Essentia clients benefit from monthly sessions with our own Account Execs, to ensure they get the most out of the system.
But for those who are ready to take the quest for continuous improvement to the next level, we offer a roster of hand-picked specialist trader and portfolio manager coaches, trained to use Essentia to maximise the results of the coaching process.
Essentia believes that when it comes to coaching with data, the whole is greater than the sum of the parts.
If you are an experienced coach, with current clients who are portfolio managers and/or traders within hedge funds, banks or traditional asset management firms, and you suspect Essentia’s data and decision support software could benefit your ability to help your clients, please apply to join our Certified Coaching Partners Programme.