AI offers countless untapped headstarts, including detecting investment risks early on. Hudson Labs spotlighted Supermicro's "hidden in plain view" risk two years before the stock freefall, as Noah Barsky highlighted in a Forbes article.
Hudson Labs offers innovative AI-powered tools that facilitate high-quality investment and equity research. One of the most compelling examples of our tech in action is its early detection of financial risks at Super Micro Computer Inc. (NASDAQ: SMCI). Hudson Labs forensic risk score for SMCI was elevated as early as 2019, signalling potential issues that would later become headline news. In 2022, we identified related party transactions at SMCI that pointed to possible financial manipulation. This is well before the company's eventual late filing of its 2024 annual report (NT 10-K) on August 30, 2024, and the subsequent Hindenburg Research report that sent stock plummeting.
SMCI has repeatedly disclosed in its filings the significant stake owned by Steve Liang, brother of the CEO Charles Liang. More importantly, Steve would then sell components back to SMCI, raising several red flags.
Such related party disclosures are often difficult to detect using manual methods used by equity research analysts given the sheer quantity of company filings. Using our finance-specific large language models (LLMs), Hudson Labs flagged these transactions as high-risk, placing SMCI amongst the top 100 companies with very high related party risks. Our AI tools process over 800,000 SEC filings each year, analyzing millions of pages and billions of words to uncover patterns and red flags that might otherwise go unnoticed. This early detection allowed Hudson Labs to warn clients about the potential risks in SMCI long before the broader market caught on.
In a world where the smallest oversight can have significant consequences, Hudson Labs provides the tools needed to navigate the complexities of modern finance. Embrace the future of equity research with Hudson Labs, and complement your strategies with advanced risk detection and analytics.
Hudson Labs is the only provider of an AI-driven real-time dataset of all US public companies' concentrated related party risk disclosure. If you're a current customer, you can access the dataset here.
Explore new features and updates: Login to Hudson Labs platform
Interested in trying our platform? Book a demo today
In case you missed our recent posts:
