Kavout

Kavout is a financial technology company, established in 2015 by founder Alex Lu, that operates an investment platform utilizing artificial intelligence and machine learning. Lu, with over two decades of experience in AI and machine learning at technology giants like Google, Microsoft, and Baidu, founded the company to democratize access to institutional-grade analytical tools. The firm is headquartered in Seattle, Washington, with a research office in Beijing.

The company's core business revolves around providing AI-driven investment analysis and tools for a diverse client base that includes individual investors, active traders, financial advisors, and institutional clients like hedge funds and asset managers. Revenue is generated through a subscription-based model, offering different tiers of access to its platform, as well as through customized solutions and consulting services for institutional clients. This includes a model referred to as Kai-as-a-Service (KaaS), where institutions can leverage Kavout's machine learning platform for their own data and modeling needs.

Kavout’s flagship product is the 'K Score' (also referred to as Kai Score), a predictive equity rating that ranks stocks on a scale of 1 to 9. A higher score indicates a greater probability of outperformance over the subsequent month. This score is the output of machine learning models that analyze over 200 factors, including company fundamentals, technical indicators, and alternative data sets like market sentiment from news and social media. In 2024, the company expanded its product suite by launching InvestGPT, a generative AI tool that functions as a research assistant, and Deep Research Agents for in-depth market analysis. The platform provides tools for stock screening, portfolio construction and diagnosis, and real-time trading signals for stocks, ETFs, and cryptocurrencies.

The company positions itself as a 'quantamental' analytics provider, blending quantitative data analysis with fundamental research principles. It offers its K Score data feed to investors, which can be incorporated into their own models to generate alpha. For financial advisors and RIA firms, Kavout provides outsourced CIO/CTO services and technology upgrades to integrate AI into their workflows. For individual investors, the firm operates as a Registered Investment Advisor (RIA), offering individually managed accounts where Kavout has the authority to execute trades based on its quantitative strategies.

Keywords: AI investing, machine learning stocks, quantitative analysis, K Score, equity rating, financial technology, investment platform, portfolio optimization, stock screener, predictive analytics, alpha generation, institutional research, alternative data, generative AI finance, Alex Lu, Registered Investment Advisor, wealth management tech, InvestGPT, quantamental, crypto analysis