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Connotate Technologies Provides Earnings Before the Wires

New Study Demonstrates Connotate Technologies’ Extreme Advantage for Hedge Fund Trading 

NEW BRUNSWICK, NJ — December 7, 2004 – In today’s ultra competitive hedge fund trading environment, New Jersey-based Connotate Technologies, Inc. has found a new way to provide traders with an extreme advantage. Using its machine intelligent technology, a recent study demonstrated the speed at which Connotate can deliver earnings news in head-to-head competition with the national newswires. The results show that Connotate beat the national newswires over 30% of the time.

“Until now, the newswires held the standard for delivering earnings news in the most expedient way,” says Bruce Molloy, Connotate’s CEO. “But now, with the machine intelligent agent technology incorporated in Connotate’s Agent Suite™, that assumption has changed.  In the hedge fund market, where seconds can determine a trader’s success or failure,” continues Molloy, “getting information before it is available on the newswires can create a distinctive trading advantage”

The study encompassed 124 randomly selected public companies representing both the Fortune 500 and Russell 3000, specifically targeting the release of third quarter earnings.  The methodology utilized Connotate software to build software agents on each of the 124 company websites as well as sites for the national newswires to monitor earnings news before and after scheduled release times. Of the companies tracked, 14 firms did not post earnings on their own websites during the window of opportunity, while seven firms did not post on the newswires.  Connotate beat or tied the newswires in 40 out of 124 occurrences, or 32% of the time, including earnings releases for such companies as Monsanto, Johnson & Johnson,  Black & Decker,  Chubb, and Boeing.

In addition to the advantage Connotate offers in delivering earnings news, its solution provides numerous other benefits. The scope of market data that Connotate agents can collect makes the system a powerful, easy-to-use business intelligence platform for harnessing valuable streams of Web data. Money managers, traders, analysts and researchers are empowered through a wide range of software agents providing content, data, and other unique, essential information.

Real World Applications in Finance
Connotate provides a number of real world applications for financial firms:·      

• Utilize Valuable, Unique Data Sources and Data Feeds – Data agents can be configured to monitor any of the over 500 billion web pages currently available. New information posted to a site can be automatically converted into real time data. Exotic foreign market sites, energy sites, commodity sites and many more can be transformed into streaming data feeds.
  
  
• Monitor Breaking News – In addition to the monitoring agents that can watch earnings releases during scheduled windows of time, agents can wait for unexpected news. Sites can also be monitored for changes in management, product news, partnership developments, and M&A activity. Results can be sent to humans via alerts, E-mail, instant messaging, portals or pagers, or to computers via downloads to  databases and spreadsheets.
  
  
• Configure Automated Personal Research Assistants – Research agents can monitor and aggregate information from numerous sources. This information can be personalized through filters, classifiers and value-added processing. Complete personalized HTML reports can be generated and delivered automatically. Research departments can leverage existing expertise and greatly enhance productivity.
  
  
• Arbitrage Inefficient Markets – Harvesting agents enable the creation and execution of new arbitrage strategies. Many areas of opportunity exist including energy, commodities, foreign, exotic and emerging markets.
  
  
• Aggregate and Integrate Valuable Web Content – Integration agents can be placed on any HTML Web site thus “XML/Web Service enabling” the site; government databases can be extracted and repurposed, while diverse portfolio, fund, and account information from disparate sources can be aggregated and integrated into a single database.

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