YH2 Capital Management leverages AlphaSense to streamline intelligence and drive conviction

This piece highlights how YH2 Capital, a leading Singapore-based family office, transformed its investment research process by adopting AlphaSense’s AI-powered platform.

In today’s fast-moving investment landscape, spending days navigating fragmented data and outdated tools is no longer viable. For YH2 Capital, a high-performing family office, traditional research methods like manual document review and limited search functionality were slowing decisions and obscuring vital insights. That changed with AlphaSense. By adopting its unified platform powered by Enterprise Intelligence and Generative Search, YH2 dramatically accelerated its research workflow, achieving a 7× time savings and uncovering critical insights with pinpoint accuracy. What once took days now takes hours, transforming how they find the needle in the haystack.

The Challenge:

Reliance on scattered data sources proved to be very time-consuming and made it difficult to distill meaningful insights
Legacy tools such as Bloomberg limited the UI experience, were not intuitive for in-depth research, and lacked semantic keyword function
Company coverage involved cumbersome manual extraction from 10-K, 10-Q, earnings, and press release documents

The Solution:

Data and insights are aggregated into AlphaSense, a uniform platform that “checks all the boxes”
Enterprise Intelligence and Generative Search are powerful resources to locate the “needle in the haystack,” surfacing crucial insights across internal and external knowledge sets
A 7x reduction in time spent conducting industry or company due diligence. What typically took three to four days to research can now be accomplished in half a day

The Company

YH2 Capital is an investment management company of a family office in Singapore, whose capital is 100% contributed and owned by its founders. Operating since 2010 with an owner’s approach to investment, the firm has achieved rapid success, securing a compound annual return close to 30%, far outperforming the S&P 500. The company employs a global and multi-disciplinary approach for identifying disruptive market trends, and adheres to a high-conviction, high-concentration principle for selecting only the best-in-class businesses. In addition, YH2 maintains a deep commitment to philanthropy, leveraging the capital gains from their fund to funding two charitable foundations focused on education and rare diseases.

Defying the Unknown

At YH2, analysts take a sector-agnostic approach, evaluating opportunities across a range of industries with a broader macroeconomic perspective and secular trends in mind. Adhering to the owner’s approach requires the investment team to develop a high level of conviction in the long-term potentials of a company, which can only be achieved by thoroughly and rigorously analyzing the company, the industry and its long-term trends. The team performs in-depth research individually to explore an idea or thesis, then presents findings and corroborates evidence with colleagues, tweaking hypotheses to better understand major trends affecting particular industries.

With AlphaSense, the team is able to aggregate the pieces critical to investment research that formulate the larger puzzle. The team leverages content sets such as AlphaSense’s Expert Transcript Library to fill any potential gaps in their research, providing an invaluable perspective from every stakeholder view. With traditional sources, this is simply unmatched and unattainable. As Senior Analyst Zhi Hao Kok explains, “Expert perspectives are very valuable in our investment process. We like to know how companies are being viewed by every single stakeholder. With AlphaSense, we’re able to fill in all the gaps in the research process, and with a very high signal-to-noise ratio.”

The precision and depth of insight provided by AlphaSense empowers YH2’s team to move beyond uncertainty, streamline their workflows, and reinforce the conviction behind every investment decision.

Streamlining Internal Knowledge

YH2 had been using a proprietary OpenAI LLM-based search engine built in-house to streamline their vast library of investment reports and proprietary knowledge across multiple sources such as Microsoft Word, SharePoint, and many internal folders, but realized the in-house solution had inherent limitations. In addition to the build project taking months to complete, it required ongoing maintenance, had a limiting user interface, and lacked references to exact document citations, making it difficult to unify their knowledge sets.

Realizing the undertaking was too costly from an investment and resource perspective and still failed to yield the results they were looking for, the team turned to AlphaSense, whose purpose-built generative AI tools incorporate natural language queries with out-of-the-box deployment and same-day functionality.

By adopting AlphaSense’s Enterprise Intelligence solution, they drastically reduced the time spent on research and locating existing proprietary intelligence. The team also enhanced firmwide collaboration by utilizing Generative Search to link exact document references in search results, simplifying information-sharing and boosting confidence by knowing exactly which internal documents are referenced in the output. Research that previously took three to four days to complete now takes just half a day with AlphaSense.

“The good thing about Enterprise Intelligence is that everything has a document link,” says Kai Jian Cheow, Investment Manager. “If you want to share a finding, you can highlight a particular snippet and share it. AlphaSense has made information sharing and working collaboratively much more effective overall.”

Beyond speed and collaboration, the ability to save hours stitching together tables and financial data from 10-Qs, 10-Ks, earnings, and press releases is a ‘game changer.’ Together with expert insights and leading broker research, the team is able to make confident decisions with every perspective providing relevant context.

As a firm driven by a long-term investment strategy, YH2 must be rigorous in their research and confident in the decisions they make to ensure they invest in companies with the greatest chance of withstanding market volatility. A partnership with AlphaSense is critical to achieving these goals.

Looking Ahead

Like other investment firms, YH2 Capital is keen on the opportunities and efficiencies emerging with generative AI. In particular, the firm will continue to build on its success with the Enterprise Intelligence solution, surfacing key insights across external, internal, and proprietary intelligence to form one universal source of truth. Yen How Tai, Co-founder, Co-CEO, and Chief Investment Officer, explains, “From the inception of YH2, my vision has been to create or adopt an investment intelligence platform that seamlessly consolidates all relevant information into a single interface, equipped with intelligent search and retrieval capabilities to generate profound insights efficiently and promptly. After years of exploration, AlphaSense stands out as the first solution with the potential to realize this vision. While still in its early stages, the Enterprise Intelligence solution shows great promise. With ongoing advancements, we are optimistic that AlphaSense can fulfill its potential as a comprehensive investment intelligence platform.” The team also looks forward to eventually consolidating all their financial modeling activities on the AlphaSense platform and retiring legacy solutions.

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