Risk Management | How Trill A.I. Works2019-04-04T20:55:22+00:00

Risk management is a fundamental element to investment strategies and is used to identify potential contributors to downside in an effort to minimize the impact of the unexpected.

The risk management process is the most critical step in developing a robust fund strategy, because inevitably, the level of risk drives the level of leverage and return. Smart investment strategies hinge on risk levels that are consistent, measurable, and justified.

Over the last 20 years, quantitative risk processes have become increasingly sophisticated. Complex covariance matrices in conjunction with risk factor models have become the predominant style of choice to analyze security and portfolio performance. Firms are constantly looking to integrate a wider array of factors and data for risk attribution and modeling, and with the growing prevalence of artificial intelligence, the risk management landscape is evolving.

Trill A.I. is changing the market with new, forward-looking risk exposures

Trill A.I. is leveraging deep neural network architectures to evaluate the forward-looking importance of more than 130 risk factors from macroeconomic and financial statement data for all US and international public equities. Instead of manually constructing risk factors and correlations, we have built a proprietary engine to automatically identify important macroeconomic and fundamental factors as well as statistically evaluate their importance towards future stock performance.

Our forward-looking risk factors are uncorrelated to traditional risk attribution values. We deliver the relative importance of every factor for each security based on projected absolute returns for a given public equity. With our risk models, our clients are able to accurately assess both their future performance exposures and the company-specific performance drivers of their holdings and trades. The result is both more optimal diversification and more sophisticated alpha capture.

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Why didn’t I prioritize this sooner?

(It’s the #1 thing we hear from people once they’ve added Trill A.I. to their process.)


“You are definitely ahead with respect to deep learning.”

Hedge Fund Analyst of a Top 5 Quantitative Hedge Fund by AUM