Equity traders will have a greater feel for market sentiment and the possibility of drawdowns following the release of technology that provides insight into long and short positions.
S3 Partners, a financial data marketplace and workflow platform which provides short interest data, has released S3 Black Map application to Bloomberg Terminal users.
Bob Sloan, managing partner and CEO of S3 Partners, described the app as “a true breakthrough” for institutional investors.
“[S3 Black Map] can identify and cure crowded trades with the potential for significant drawdowns, which will improve [traders’] Sharpe and Sortino ratios; help them identify the market’s dry powder; and analyse market momentum and opportunities.”
S3 claimed Black Map – which is now on the Bloomberg App Portal – enables managers to solve three “pressing questions” when evaluating individual positions or an entire portfolio.
First is the market sentiment on a trade idea, position, or portfolio; second how much of a position or portfolio is exposed to concentration and herd risk; and third how the passive and active investment strategies positioned in the marketplace.
Sloan said traders face lower market volumes and have fewer names to trade, which given growing assets under management, means “individual trades can make or break strategies for active managers”.
Bloomberg’s App Portal gives terminal users access to dozens of third-party software tools for news and social sentiment analysis, technical charting analysis, data visualization, and more.
Sloan said the addition of Black Map to the portal means that users can filter by industry, sector and cohort to quickly see which stocks in their portfolio are crowded and how the rest of the market is positioned daily.
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