A new fintech company is making waves by helping retail investors fight back against Wall Street.
NEW YORK, July 22, 2024 /PRNewswire-PRWeb/ -- A new fintech company is making waves by helping retail investors fight back against Wall Street.
Prospero.Ai is an app that is catching on among at-home Wall Street bettors – mainly because it's giving them the power they have so long craved: an opportunity to make headway in the stock market even when competing against the big budgets and research arms of the large financial institutions and hedge funds that dominate the market.
Alongside its app, the company teaches retail investors how to make sound stock picks based on an analysis of the company's unique and powerful stock market signals. The stock signals simplify and visualize what stocks are high and what stocks are low in the marketplace, based on a variety of factors including how institutions are making bets in the options market. The combined information has led to their newsletter stock picks beating their S&P 500 benchmarks by 85% on an annualized basis in 2024. (As of 06/28/24) The 2024 results come after beating the S&P 500 by 47% in 2023 and 71% in 2022.
Prospero.Ai CEO and founder George Kailas has built trust among an army of loyal retail investors turned app users after his own stint working for a hedge fund and a mortgage banker in the early 2000s.
"Whether it was the summer I spent in Mortgage Finance at Bear Stearns in the summer of '06 or various positions on the buy and sell side on Wall Street, I saw the same themes: a stacked deck for institutions. Not only that, but whenever they used those stacked decks to build their sometimes shoddy houses of cards, did those that profited off the rise pay the price? No. That bill was handed time and time again to the American taxpayers," Kailas said.
Kailas' deep experience in Finance and AI is the backbone for the stock market signals– given away for free in the Prospero.Ai app.
"The stock signals cut through the noise and show where institutions are betting, not the stories they want to sell you in woefully insufficient reporting structures like 13F statements
We're beating them at their own game. Instead of just believing what they say they're doing, we're watching our signals tell us what they're actually doing– and it's not the same thing," Kailas said.
For example, an aggressive short sale campaign against Super Micro Computers (SMCI), a computing company specialized in AI applications, appeared to be sending the message that the company had reached its peak. But the Prospero.Ai stock signals showed the majority of financial institutions were still favoring the stock. It ended up being a slam dunk win for Prospero.Ai users. SMCI went up 40 percent the same day it was placed in the Prospero.Ai high conviction picks.
"Wall Street is known for talking out of both sides of their mouth. In the case of SMCI, people are saying publicly that it's overvalued and shorting the stock, but when we look at Net Options Sentiment, our signal that tracks options bets of large financial institutions, we see they are betting on the stock to rise in the options markets. So their secret actions are directly refuting their public actions," Kailas said.
Following the signals and sticking to rigorous investment principles is something Kailas, the primary architect of the signals, has sometimes had to learn the hard way, he said. For example, Kailas said he watched META rank at the top of a signal that determines good long term investments for two months before he finally put it on the stock pick list in February of 2023. Since then META has been up 172 percent.
"Our signals have shown time and time again that it's better to align with institutional bets rather than be swayed by public opinion or even short activity, because both can be manipulated. Part of what Prospero.Ai does for our users is teach them how to invest as much as it simplifies investing," Kailas said.
Users seem to be responding well to the strategy too. Partially powered by the enthusiasm of the meme stock craze and a general exhaustion of growing divide between the one-percent and the middle class, the company user base is growing rapidly. The app has users in 163 countries and both of their newsletters rank in the top 150 finance publications on Substack.
It is free to use the stock market signals in the Prospero.Ai app, and the company also gives away free stock picks each week. It offers additional stock picks and market research in weekly trade updates in paid newsletters. The company plans to build its next generation tools and paid trade alerts after its Seed round is complete. Kailas said his aspiration for Prospero.Ai is to be the asset manager of choice for retail investors.
"I didn't build this company so I could become rich. If I do, that's a by-product, because the mission for Prospero.Ai is bigger than me. Our mission is to help everyday people build the American dream that was supposed to be, but so far hasn't turned out in the last few decades. People need to be able to earn a living that can lead to a good life and eventually retirement. Hopefully, our mission can reignite the growth of the middle class by making stock market success more attainable," Kailas said.
About Prospero.Ai
Prospero.AI is a hedge fund level AI research desk for any investor. This transformative FinTech is built on a mission to democratize access to key market signals. The results speak for themselves, their newsletter picks leveraging simple applications of these signals are beating the S&P 500 by ~50% in 2022 and 2023 and by 85% through 5/29/24.
Groundbreaking tech is built on joint IP with NYU and battle tested for 10+ years on tough financial problems and leverages the power of Artificial Intelligence to distill millions of real-time data points on stock performance into simple, actionable insights, empowering both novice and seasoned investors.
Media Contact
Myra Godfrey, Jaya Jaya Myra Productions, 1 3474764358, [email protected]
SOURCE Prospero.Ai
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