Highmoon’s Holistic Approach To Investing: Where GenAI Meets Behavior.

Once upon a time, there was a market for sentiment analysis across multiple vertical industries. Companies wanted to know what clients thought about ther products, services and even their “attitude. ” Did their clients like them, loathe them, empathize with their struggles? Social media sentiment analysis was a way to expand insight into what clients do and think beyond traditional customer interviews and surveys.

Data was collected from newspaper clips, blogs, posts, headlines, articles and speeches – an expanded view of the customer. But not a complete view. Fast forward a decade and a truly holistic approach to investing is the raison d’etre of .

Many of us who have championed the role that so-called “soft” variables play in decision-making have been waiting for a comprehensive approach to problem-solving – in this case investing – for decades. Highmoon describes its approach this way (the italics are mine): Highmoon blends all this with “traditional” market metrics to generate a complete picture of market conditions that generates informed investment decisions. It’s amazing how many market analysts cite “emotion,” “psychology,” “sentiment” and other soft variables as the drivers of company and market performance, but fail to integrate them into their assessments or predictions.

Decades ago there were clear technological barriers to measuring the importance of these variables, but today we have generative AI (GenAI) and other tools that enable us to integrate hard and soft variables for improved investment decision-making, risk reduction, and even market projections. : Lumine Lin, Founder & CEO, Highmoon Capital As the Highmoon founder and CEO – Lumine Lin – explains: But Lin’s most important statement? The marriage between soft market forces and GenAI is a smart one. While it remains to be seen how emotionally smart GenAI can be – how fast, if at all, it reaches general AI (GAI) – there’s no question that Highmoon’s approach is the right one.

It’s also one that will reveal some unexpected investment results as GenAI’s capabilities grow. Said a little differently, the timing of all is this excellent as the capabilities of GenAI will only grow — and grow quickly. The key to all this is the research agenda that emerges from a holistic approach to investing.

The premise of Highmoon’s approach is that there’s a large – and growing – family of variables that drive financial performance. When that’s the assumption, research yields never before seen nuances. Well-bounded problems with pre-packaged solutions are redefined into broader, fuzzier problems that require a set of new methods, tools and techniques that have not been in the traditional arsenal of financial analysts.

Highmoon is pioneering the application of GenAI to enable its holistic approach to market analysis and the deployment of capital. At least two aspects of this are unique: the broad definition of market drivers and the application of GenAI. The integration of cognitive biases, emotional influences, stock market sentiment, traders’ emotional intelligence and psychological factors with traditional financial metrics is what many of us have been hoping would transform the investment thesis.

The journey from social media analytics to GenAI-enabled holistic investing has been a long one — but it’s begun at Highmoon. Stay tuned. .