Make Money & Raise Money With AI for Hedge Fund Managers

Hey, welcome to another episode of Making Billions, I'm your host, Ryan Miller and today I have my dear friend Andrew Einhorn.

Andrew is the Chief Executive Officer and co-founder of levelfields.ai, an AI driven FinTech company that automates arduous investment research so investors can find opportunities faster and easier.

So what does this mean? Well, this means that Andrew and his team at LevelFields have created an AI enabled platform that helps both personal and professional traders analyze 10s of 1000s of data points to make their trades and win in their markets.

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http://www.levelfields.ai/

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[THE GUEST]: Andrew is the Chief Executive Officer and co-founder of levelfields.ai, an AI driven FinTech company that automates arduous investment research so

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• 22:14 (Cont.) Make Money & Raise Money With AI for Hedge Fund Managers

Transcript

Ryan Miller  

My name is Ryan Miller, and for the past 15 years, I've helped hundreds of people to raise millions of dollars for their funds and for their startups. If you're serious about raising money, launching your business or taking your life to the next level, this show will give you the answers so that you too can enjoy your pursuit of Making Billions. Let's get into it.

Ryan Miller  

With the launch of AI and everything that is coming at traders, there is an immense amount of information that is flying at you by the second, but what if you could flip the script and use AI to make a boatload of cash while running your hedge fund or other trading operations? Well, my next guest is going to talk about that exact thing and how his company has wrangled the AI bowl for traders so they can process more actionable information and make trades that win, so that you too can enjoy your pursuit of Making Billions. Let's get after it. 

Ryan Miller  

Hey, welcome to another episode of Making Billions, I'm your host, Ryan Miller and today I have my dear friend Andrew Einhorn. Andrew is the Chief Executive Officer and co-founder of levelfields.ai, an AI driven FinTech company that automates arduous investment research so investors can find opportunities faster and easier. So what does this mean? Well, this means that Andrew and his team at LevelFields have created an AI enabled platform that helps both personal and professional traders analyze 10s of 1000s of data points to make their trades and win in their markets. So Andrew, welcome to the show.

Andrew Einhorn  

Man, thanks for having me, man, good to be here. I've been a fan for quite a while, you get the best guests on the show, so I'm pretty flattered to be one of them today.

Ryan Miller  

Yeah, that's right, man and with us in the community, we're very fortunate to have you and talk about your AI technology that you've been able to develop and help traders around the world. We're in 100 countries, we're in the top 3% in the world because of amazing guests like you. So let's start out what is LevelFields and honestly, why should investors care?

Andrew Einhorn  

So LevelFields is effectively research automation tool meets trade discovery platform. What we're trying to do with AI is eliminate a lot of the barriers to finding a good investment, finding a good stock, and also keeping up with the news around that stock. So typically, you know, if you're looking at data, you've got about 2 or 3 million company reports or filings that happen a year, 21 million news stories, and that's just stocks that are carried on the NASDAQ and the New York Stock Exchange alone. There's no human anywhere that can keep up with that. We end up pouring a lot of our time in reading and interpreting reports, looking at sort of information, and scanning news, just spending a lot of time to try to keep up with our investments or find new investments. And so what we did with AI, we took a lot of that pain out of the process and said, you know what? You don't have to do this. We're going to create AI search agents, and they operate kind of like speed readers. AI is pouring through about 30,000 documents a minute, and this is stuff that's coming in real time, and it's looking for events, because events are what move share prices. Events are what kind of build and destroy companies. And if you look at only certain types of events, material events, you can ignore most of the news and opinion in the marketplace, because you're just picking up directly what the companies are putting out there and being able to analyze that immediately. 

Andrew Einhorn  

So what does that do? Well, it saves you time, makes you money, and also helps you lose less money by making bad decisions or not having the information in a timely manner, or not knowing that something awful happened, you know, to a stock while you're out you know, working. So we have these alerts and these AI systems that are now working on your behalf. 24/7, looking for really interesting signals, events that are proven to move share prices north or south. Could be either way. And what we find is there's a variety of different uses for it. Some people are using it for, you know, long term research, you know, for long term investments. So we try, with our system to really kind of eliminate the bias and the opinion and the emotion and make it more about facts, data, events, and you can cut through a lot of information in a very, very short period of time. So our, by our internal tests, you can speed up the process of research on stocks and investments by about 1800x at your typical time, and it's also updating all the time.

Ryan Miller  

Love it and you know, you and I have talked, and I've been a big fan, and I've used your technology a little bit before the show. It's fascinating, because most people work on, say, technical analysis or fundamental analysis, they trade on charts, they trade on earnings. All great stuff, for sure, they're wonderful, but one of the things, and this is an interesting concept, and I'd love for you to unpack, is trading around events, a hurricane, a CEO departure, oil price crash, whatever an event. And one of the things that LevelField that I love is you kind of introduce a third methodology outside of technical and fundamentals, which is event driven trading. So talk about what event trading, what event driven trading is, and how does that technology help people to profit?

Andrew Einhorn  

Sure, yeah, so event driven trading is, you know, in concept, not new. All the largest hedge funds and most successful ones in the world have at least 10 to 15% of their assets under management, typically devoted to some kind of event driven investing. You can look at what's happening in the news, have an understanding of how that is going to impact a market, an industry sector, or a stock in the near term. The reason I like event driven investing is that it is predictable. You're not trying to figure out what is going to be the next Amazon 20 years from now, which is something that a lot of these sort of you know, blogs and stock picking sites will say they're doing is not possible. Nobody knows the future. 20 years ago, 20 years from now, you're not gonna know what's gonna look like, but you can figure out what it's gonna look like three days from now. And so it's more like looking at the weather. You have kind of a 10 day forecast. After that, it gets a little foggy. You're not really sure what's gonna happen, but you know, if rain is predicted for two days from now, it's probably gonna rain and that's similar to event driven investing. If you have a bad news event, the Department of Justice comes out and files a massive lawsuit against your company. It's probably going to drive the share price down. And I think we all can agree to that, and you can react to that, and you could say, you know, I think this is a blip. I'm going to buy on this. Or, if you're, you know, taking a short position, you could buy puts and make some money that way real quick. 

Andrew Einhorn  

The nice thing about it is that it, I think it works really well with human brains, because we're always trying to file information based upon what we know to be true, and sort of support our own bits of knowledge. The other thing I like about it is that you don't need to have a 20 years experience on Wall Street. You don't need to be an expert in fundamental analysis or take a Warren Buffett type approach to having a margin of safety for everything that you're investing in, because you're not looking to be in that stock for the rest of your life. You might be in that stock for five minutes. You might be in it for five days or five months. So you don't need to be thinking about all the technical analysis and whether or not you see a triple top or a bullish engulfing indicator. You say, you know, it's gonna go up, how whatever the charts look like afterwards, how fast it goes up, it's gonna go up, it's gonna go down. And you can take the analytics of it and really predict almost in like, Las Vegas odds, right? Like, hey, we got a 85% chance of this particular event impacting stocks the way that it has impacted all these other stocks in mast, it just makes it really easy. So it's lowering the barriers to entry for a lot of people that really find it difficult to figure out. Like, how do I start with the strategy? There's a million strategies. There's so many stocks. Like, where do I get started? Is often what we hear among some of the beginner traders that use our platform, and they like the fact that when they look at a chart on level fields, we actually have the events right on the chart. So when you see this big drop right at the top of that drop, it says, you know, bankruptcy filing, like, oh, okay, that's why it drops. Those who are trying to understand what's happening day to day in the market can just look at the system and quickly understand what's driving these big price movements, because unless you're sitting on a news feed all day on one stock, you're not gonna be able to do that.

Ryan Miller  

Got it? You know, my question is, though, are people actually making money at this? I mean, this, this sounds very cool, almost too good to be true. So you have all these agents, they're scanning the market. They're analyzing tons of data, like you said, speed reading. So imagine using a technology folks, where you have all of these analysts that are analyzing things as literally their job, but now it's at a speed that is completely unheard of until now, and so using LevelFields, it allows you to synthesize all of that information. Like you said, it's like there's so much, there's no way one trader can synthesize this in a timely way and actually get in front of that and make a decent position. But the question is, well, all of that's good because I've seen a lot of flash, so forgive me if I sound a little skeptical, but I really want to make sure that this is good, are people actually making money at this though? What are you seeing?

Andrew Einhorn  

Yes, for sure. I mean, I would say, just as a disclaimer, markets can get crazy no matter how good your signals are. There are days that are just going to swamp those signals. You know, got politicians invading other countries and declaring war, and that's going to always overcome a strong signal, like we see. But having said that, the correlations in the platform are really strong, and people are making money off the platform. Just a recent example, only a few days ago, super micro computer got hit with this nasty short seller report. This is a hedge fund that they do almost like investigative reporting. They put out, you know, 30-40 page report on their findings. Their findings said that SMCI is falsifying their accounting records, making their revenues look much higher than they actually were. They said that not only that, but they were violating different types of sanctions against exporting their technologies overseas to China and Russia and it was scathing report, so.

Ryan Miller  

Yeah, sounds like it.

Andrew Einhorn  

Doesn't sound good, right? But you don't really know how big a deal this is unless you know who that short seller is, and our system has been trained to identify, you know, specific short sellers that are accurate, ignore the ones that are just kind of noise based on the data, not our opinion. In this case, if you look on the platform, it says, on average, in the first week this scenario, this event is going to drive the share price down 17% on average across like the last 35 events like this. So what happened? SMCI is down 21% in the week. Just tanks and a little extra sauce on it because it was so frothy to begin with. And I did hear that at one of our interns just bought a $300 Put as soon as the alert came out for the system, and by the end of the day, that 300 bucks was $3,000 the 10x return.

Ryan Miller  

In a day, wow.

Andrew Einhorn  

That was like three months of rent for him. So he was super happy.

Ryan Miller  

You buy a lot of ramen.

Andrew Einhorn  

You buy a lot of ramen.

Ryan Miller  

Yeah? No, I got it, man. So phenomenal, holy smokes. So that's one example, do you have others? 

Andrew Einhorn  

I've got tons of others. So we have two levels, lets just say, sort of like the do it yourself level, which is a couple 100 bucks a year for subscription, and then the more premium one, where, effectively we're our analysts are paid to kind of cherry pick the alerts from the system and sort of explain the best, like entry and exit points. And so we send those out to very loyal subscribers platform. One of the ones we send out, we got a lot of flak for early on, because it was a home builder, and it was like, let's say mid 2023, Multigroup is the name of the company, THM.

Ryan Miller  

Ya, huge. 

Andrew Einhorn  

And then we said, like, buy this company. Like, all the signals are really positive. And of course, you know, interest rates were going up. And the logic is, well, in an environment where interest rates are rising really rapidly, housing is supposed to suck, right? 

Ryan Miller  

Yep.

Andrew Einhorn  

It didn't make sense that this stock would be going well. So we had a couple of our users, like, reach out. Like, you guys are nuts. Like, why would you pick the worst sector, literally, textbook sector, to be shorted? And we just said, I don't really care what the rules are. I'm telling you that we see, you know, they're doing all these kinds of return of capital. They're beating earnings like all the data is showing us that this is working out. So he said, you know, this is a buy and this is a hold, and then from that position, the short version is double 100% since then, we got a lot of the same users came back. We're like, all right, I was wrong, you're right. Like, appreciate that. Glad you explained it. And part of the explanation for that was there is a housing shortage. So if you have to buy a house, and nobody is selling their house, like nobody's moving from their house, because we're all in mortgages that are three 4% from the covid days, so there's no volume of homes, the only place to get a house is a new one from a home builder. Not only that, because they're building the house and selling the house and making pretty good margin on the house, they don't have to gouge you on the loan. And they're offering loans that were five, five and a half percent, when the rest of the loans were eight at the time. You know, it was a supply demand issue. They had all the tailwinds. The data was telling us this was a positive story. And we would even go through these weeks in the market, we're like this. The stock would tank, you know, it would go down because they're pumping this narrative on CNBC and other channels that home builders dead. Housing is dead. Real Estate's the worst. You know, we're looking at like these guys are crushing, you know, just don't listen to, don't listen to. And sure enough, you know, the next earnings report came out, and then the next stock buyback or the next dividend increase, it just ripped and so, you know, we had different trade setups that we sent out. Some were equity only, and some other folks follow us through options trades. So the options trades were doing 50, 60% in a month or two months. Close it out. Wait for a dip. Do again. So there's a lot of money made on that one. 

Andrew Einhorn  

My own story, using the platform myself. This was a little ways back now, but it was a bad time in the market. It was a really bad time. So it's early 2022 everything's selling off. The fund's over, so to speak. Easy money was gone, and it was February, so there's tanks lined up on the border of Ukraine. Putin's about to go in. We're all thinking, Nah, no one's that crazy to do that. But sure enough, it goes in, and markets tanking. Everything seems to be going wrong. You know, anything that was great in 2021 Apple and Google, whatever, they're crashing. But we started seeing through the platform these crazy announcements from this group of companies that were doing special dividends, buybacks and dividend increases and great, you know, things like that, just giving cash away. And it was coming from a sector of the market that I never invested in, which were fertilizer companies. So I just followed the signals and said, I don't know what this is about. Let me. Let me check out what this company does. Okay, sodium potash. What's that? Google it. Where does it come from? Oh, most come from Ukraine, Belarus and Russia. So they could not get the,

Ryan Miller  

There it is.

Andrew Einhorn  

the fertilizer out of the region because of the conflict. And as a result, this Canadian company, Nutrient.

Ryan Miller  

Yep, know him well.

Andrew Einhorn  

Probably your neck of the woods, right? And they could sell their product three times the amount without doing anything different. They had crazy margin and had all this cash, and they were just giving it away. And, you know, it's like, All right, I'll, I'll bite the stock opt, probably 50% I would say, in two or three months, option calls were 2 or 300% gains in that time period. And, you know, as someone who running a startup and putting a lot of my money into the platform, when I have the time to just go in and make some quick money back and then report back to my wife, like, hey, it's not all lost money on the platform. You know, we're putting money into it. We're also getting it back now. Like, ATM style is great. So it was fun for me. 

Ryan Miller  

That's awesome. So, you know, there's, there's a lot of events. It sounds like, you know, there are a lot of events. I'm sure these three that I've probed for are just the tip of the iceberg. But, you know, let's peel that back a little bit more, just for our listeners around the world. I think I have a pretty good sense, but I really want to make sure that people understand exactly the power of what we're talking about here, folks, is literally leveraging AI to help you synthesize market global data and allow you to take a position. And you could be some of those people that believe the recommendations and maybe it's right, maybe it's wrong, but if you want to learn the hard way, right? And you will learn, or you can listen to those recommendations in either way. This is me putting on the VC hat now, so what problem exactly is LevelField solving?

Andrew Einhorn  

There's too much information, there's too many filings, too many stocks, there's too many events, there's too much news that doesn't matter, that we have to sort through, and there's too much decision making and gut reactions or overreactions it happening across a space that's managing $100 trillion in assets.

Ryan Miller  

So my question, then, just to jump in on that, is, how did your time? Because I know you worked at a $65 billion fund back in the day, how did that shape you? What did you see there? What did you experience there that led you to discover these problems and solve it, maybe we can walk through a little bit of the influence behind a lot of this. 

Andrew Einhorn  

Yeah, by the time I had a different company which was also doing event mining and analysis, but for publicly traded companies, and I met a portfolio manager for very large hedge fund who looked at what we were doing, and our clients were really happy. They were everything from ExxonMobil to. Discover Financial and we were helping them out. We were helping them out for 50-100k year, type of, you know, SaaS contracts, and so again at the hedge fund says, you know, your guys have this incredible technology, but you're making peanuts like you really, you're solving a good problem, but for the wrong market. You should really take a look at finance, because it's the same problems, but add as three zeros to anything that you know the problem is, so it's like, All right, well, let's, let's figure it out. Like, I like to solve problems, so tell me what you need. And we started talking, well, come come behind the scenes, like, come into the hedge fund. You can, you can talk to any of the traders. You can talk to the CEO, I'll introduce you around, and you figure out, like, how your solution would actually help them. First, I just watch, kind of absorb the culture. And I saw people just staring at their screens all day for weeks at a time, scrolling through news feeds in their Bloomberg terminals. And I couldn't help but think like, what an amazing waste of time and money that was. 

Andrew Einhorn  

And so we started working together, and I was explaining my methodology to the PM, and he started out performing his peers with that methodology of just trying to find information direct from the source and basically skip the news, skip the news. Don't even think about rumor. Don't react to the middleman. Follow the data, go straight to the source the info. Get it rapidly, faster than others. Move on the move, on it with conviction. And, don't, you know, bail on it. And, and I really wanted to help, like, I was like, All right, we can do this. Like our software's already automating a lot of this. We just have to think about it for the lens of trading. And that really landed itself to how we thought about the user interface. Later, we started LevelFields in 2020, you know, we took users through the beta test, some which were executives at Citibank. Others were PMS at hedge funds, and they're like, No, I want it this way. And you know, a few people who are like Guggenheim, senior analysts, you know, the ones that would get on the calls and interrogate the CEOs, you know, during earnings calls. So I let them just, like, beat me up. Like, hit the platform. Tell me what you want to see. Tell me what you don't see. Like, how you don't see. Like, I wanted to take a lot of the institutional knowledge that you know, someone would gain over 20 years and really infuse the platform and the AI with that knowledge so the average person could benefit without necessarily having that in their storage bag of tricks. And I think we've done it. 

Andrew Einhorn  

But it all boils down to that, like, core problem of, like, how can we, particularly, just like the human race, like, forget about my business, but just how, as humans, can we make our lives better, more efficient and more enjoyable by doing the things that we like and eliminating things that we shouldn't have to do that are repetitive and boring and really kind of like $10 an hour task is so I've learned this from, I can't remember who, but somebody had a book I read and said, you know, if you're a CEO, divide your time into $10 an hour tasks, $100 an hour tasks, $1,000 an hour tasks, and $10,000 an hour tasks. List all the things that you do and map it to whether you could hire somebody to do that, and the level you would need to hire 10, 100, 1,000 or 10,000 now cross out everything that's not $1,000 an hour or $10,000 an hour task, and give it to somebody else you shouldn't be doing.  

Andrew Einhorn  

And I think I take that approach with the AI, like, want to eliminate all those kind of lower level tasks, not to say that shouldn't have people making that amount of money, but just as a way of organizing, like, what we as individuals want to be focused on. And so, you know, focus on, like, the strategy it's like, if you didn't have to hunt around for stocks or hunt around for data or spend, you know, hours and hours pouring through a 10k what else would you do at that time? You know, you could have it for yourself. You could meditate at your desk and, like, feel better. You could think more strategically, longer term past, like, maybe a single quarter. Wouldn't that be nice if people thought like, all right, well, let's do some longer term thinking about what's going to happen after, I don't know, a new president comes in November, we have four more, four years of a different person. Think about that, what could happen. You know, I would rather put my time to something like that than I'm going to spend three hours looking through a 10k trying to understand everything in there, just hunting for maybe, a sense, a breadcrumb that something might happen, rather than just with the AI. I think, you know, in summary, on that, it's like what we saw. All these big institutions have this problem. We have an industry that really slow to adopt change and have a lot of people doing things that I don't even think people would want to do, if you ask them, and the budgets because of that now seem like they're ripe for some productivity changes. Doesn't necessarily mean head count reduction, but I think with the same headcount, you could probably do 10 times as much. 

Ryan Miller  

Okay, you mentioned elections, and I know there's this topic that's coming up on both sides, in my home country of Canada and the US, there's this big topic that's coming out, and it's not a political thing, but on both sides, a lot of people are claiming misinformation, disinformation markets respond to information whether it's true or feels true, either way, it still responds. So what's your position? How did you guys address the potential of misinformation or disinformation getting fed into your AI models that influence certain traits. Have you guys considered that? How does that play into the overall algorithm of your technology?

Andrew Einhorn  

Yes, it was a great question. We absolutely consider it from the starting point. So I should say, you know, the last business that I had started, ran for 10 years and sold was also looking at open source information. Our clients for that business included the White House, Defense Department, about 100 publicly traded companies of market cap greater than 20 billion. So getting information right was really paramount to our job, and if we didn't get it right, we lost the contract. So we spent a lot of years learning what the good content looked like and what the BS content looked like, and where to get the information and. How to get the information, how to clean it, and how people would kind of circumvent the normal processes to try to influence things. And so this time around, knowing that we wanted to go and get information directly from the source as much as possible, directly from the companies. So I'd say upwards of 90% of our data comes directly from companies that are making announcements. They're putting out their reports. So we have to take those companies at face value, because they're already being regulated by the government. That would the government, that what they put out is accurate and true, although there are obviously, every once in a while you hear like the fraudsters come out and they figure out a way to gain the system financially. But it does show up as a lot in the data. But normally what we see is, you know, everything's on the up and up. Everything is straightforward. And we avoid opinion completely on the platform, no opinion. We don't use that. That doesn't change the model. We also avoid rumor. So so and so is leaving, you know, this company to go there, or I heard that Apple is going to, you know, roll out with its own car, you know, all that stuff. No, we don't have it, because most of it is not true, and it just throws people off. And, you know, there's a lot of unfortunate pump and dump schemes out there where your, you know, folks roll out to the media and they say, Oh, these are the three stocks that we're gonna buy we can hold for the next five years. We think these are the best stocks. While you're buying them, they're selling them to you because they've got 10 million shares, and you have to offload it to 10 million suckers. So we wanted to stop that whole game, so we only look at that direct information. And the AI is being trained on very high quality sources. And we also have different ways that we're training AI, not in like a broad way, like you would see in ChatGPT, but in a way that is unique for every type of event that's on the platform.

Ryan Miller  

Okay, so it does address that. We want to make sure that misinformation, disinformation does not play a huge role, so you've addressed that that's trained into the model but how does it compete with other competing technologies? For example, I if they didn't know, they know they know now, but I can't imagine Bloomberg is too excited. You know other information providers to Wall Street, to professionals, my understanding is you not only provided to retail, but mostly to institutional and professional traders as well. So how does your technology compete with some of those? Have you thought of that? Have you received any response, any threatening shots fired, anything like that. How does your technology fit into the competitive landscape? 

Andrew Einhorn  

Well, we look at it as like, we're additive, right? We're not trying to solve every single problem that's out there. You know, if you look at something like a Bloomberg or a brokerage system, like a fidelity, they have tons of data. You know, that's kind of their game. They're going to give you tons of data, you're going to play on the data, you're going to make whatever thing you want out of their data. They're not really leading you into any decision. And the goal is more execution of the trades, kind of management of the trades. And for us, we are, we are one tool in the toolbox. You know, we want people to have the opportunity to do event driven trading. Not to say that's the only thing that people need to do, but we do believe that we have an advantage when it comes to cutting through information that's qualitative, you know, or a combination of qualitative and quantitative where you can, you know, have these sort of speed readers out there work on your behalf. And so we see a future where we're integrating into other platforms, as you know, a tool set where there are data can feed into these platforms. You know, the charts and the graphs that are currently empty could be full with, you know, level fields, events, likewise, you know, integration into screening systems that are only looking at financials right now, but we could provide those qualitative data points to augment the existing tools. So I don't really see anybody out there that's truly competitive with this. I just see an ecosystem of potential partners, and someone's listening to this, hopefully they'll reach out, because that's what we're looking to do. Is sort of our act two here is start to think, okay, well, what can we make better what can we make more efficient. How do we deploy across a lot of different use cases? And, you know, we've got, as you mentioned, right, there's, there's fundamental analysis, there's technical analysis. Those have been around forever, and one has really commoditized, event driven analysis. It's really been kind of reserved for almost either knee jerk reactions or the super sophisticated hedge funds. And so, you know, we think we can, we think we can, we can add that just to say that there's technical analysis in every brokerage platform now there should be event driven analysis in every brokerage platform.

Ryan Miller  

Brilliant as we round third base and we take this our time together home, I wonder if you can leave behind maybe three competitive advantages just for our listeners around the world. What would you teach them if they wanted your best advice to really stand out in this market? What would you say?

Andrew Einhorn  

Well, I mean, the first one go back to 2019 when I sold my company, and this is for really the wealth managers who are listening to the show. I think I can give some insight into a tech entrepreneur like me that has an exit, and the press releases go out, and all of a sudden there's a barrage of calls and emails from everything from the largest firms to the small one or two person RIA saying that they want to manage my money. And I thought, okay, I've never gone down this path of interviewing different wealth managers. So let's do that could be interesting. I didn't have anything to do at the time. I just sold the company, so I had ample time to take lots of meetings. So I met with 20 different wealth managers. I was in the fidelity platform, and I was like, pinging fidelity and saying, like, all right, just give me a list, and I'll go, you know, talk to people, and went to the offices of probably a dozen directly, sat down with people, got the pitch. And what I started to see over and over again was it was this same presentation again and again. It was, we're going to manage your money, and also we were focused on your retirement. And do you know, some estate planning, and we'll deal with, you know, some tax issues, and we'll do some tax loss harvesting. 

Andrew Einhorn  

So, okay, but let's go back to the money part, because I just went through hell and back to make that money. Now that I have it, how are you going to be safeguarding it? And for the most part, I would say 18 out of 20 times I heard the same bit. Well, we're gonna, you know, do sector rebalancing. You know, we're not overweighed anything. You know, we balance at the end of the year, diversify or put it into the spy. And it was like, kidding, right? That's all you're doing. I can do that. What do I need you for? You know, and you gotta, like, Well, we do the state planning and we do the taxes. No, no, I need something better than me, because if I'm not gonna watch my money, I want somebody else to be able to do that. And nobody differentiated. So I didn't end up using any of them, because I didn't feel like there was real technology behind anything that anybody was doing. It was always based on someone's opinion or someone's, like, very seemingly subjective view of the market at that moment, and no data. 

Andrew Einhorn  

As a data guy, I hated it from leaving behind. You know, my takeaway as a would be client that they all lost is that you need to have something that differentiates you, and that should be technology this day and age. You know, it doesn't have to be so new to the marketplace necessarily. It just has to be new to the client that you're trying to bring on. And so if I was to reverse engineer this and say, they had a system like level fields, and they were looking at that and going, you know, what we use AI to your client like, this is how we keep track of our investments. This is how we do allocations. This is how we identify exit entry points more effectively each time we do that. By the way, we make you 1-2% more every time we move money around. We don't just allocate your money because it's Monday, you know, we do it on the basis of these other things. We can find different ways to generate premium using AI that they would have had me, I would have parked my money, and I would have been like, great, sold for what's worth. I think that knowing that there is a need to differentiate, knowing that there's an expectation that you're being hired effectively to be better than me at trading or investing, requires you to have the best tools and tools that are not as available, not as known. 

Ryan Miller  

So you've been on the side of the investor, and you've hit up people they gave you their pitch and say, so you want to cut me a check so I can manage your money right? A lot of fund managers listen the show are in that same position. How does like financial advisors or anything because I'm sure a lot of them are listening right now. What would you tell them, as far as a competitive advantage and using your tool? Because those are a lot of the people that do use your tool. What competitive advantage can you provide for them?

Andrew Einhorn  

I think it's massive for client acquisition and client retention. And I got this directly from one of our beta testers, actually, because they were, they were a wealth manager. They were managing about 250 million. And I put them to the platform. I said, What do you think? And they're like, I think this is a great client retention tool. So what does that mean? Why so? Well, you know, honestly, a lot of my job is my clients call when some bad news happens to one of the stocks in our portfolio, and I kind of have to play market psychologist, and I calm them down and say, don't worry, it's gonna be fine. But with your system, I don't have to just say, Don't worry, things are gonna be fine. I can say, hey, I see from our AI analytics that 9 times out of 10 when this happens, there is a mean version within the next three months, and I'm looking at this as a buying opportunity. I'm going to give it three more days, because I think that's how it's going to take before we hit peak trough. And I'm going to put more money into this stock, and we're going to watch it go up, and we're going to double down on it. And he said, you know, and that would convince a client that, you know, not only were they knowledgeable, that something happened did, in fact, happen. So I think that that creates that competitive advantage. And I think on the other end of it, you're sitting down to the, as many people do this now, but they did a pre covid. You sit down to the, you know, the boardroom table, and you go through portfolio analysis, and this is why we pick these stocks and so forth. Might have something else in a tool bag that says, oh, by the way, when things go south, this is how we protect you. Like we have a system that alerts us instantaneously. You don't have to worry about me being on the golf course when something bad happens to your money. I'll get the alert I can trade on my phone instantaneously. It's done. Boom, I'm gonna feel good about that.

Ryan Miller  

Yeah, so that's a helpful tool to not only look around corners, as I like to say, we're literally asked. We're hired by people to manage their money and to look around corners. And this is one of those tools that expands, allows you to not only see things faster, but you could probably look a lot further, as well as what I'm gathering here. Do you have a third piece, a third competitive advantage you can provide our listeners around the world?

Andrew Einhorn  

Just to finish up in the last bit? One thing to note, right? There's $24 trillion coming down the pipeline, so to speak, from Baby Boomers to Gen X and Gen Y, and those investors that are going to get that money, they're younger, they're used to technology. They're going to demand more. You're going to be competing against robo advisors. And so if you don't have something novel, they're just going to walk they're going to throw their money into some automation system, or, you know, VO or SPY. So it's important for kind of the ability leave behind you. This is really like the active traders. And I mentioned this before, and I see this so much day to day. Now that we're actually looking at different filings from behind, we can actually see who's on TV saying one thing, and then look back in time in the filings of some of the funds and see that they were doing something completely opposite. Stop listening to the talking heads. Stop listening to the forums. If they're all selling a position or idea, so you buy it, just follow the data. Don't follow the headline, follow the data. You can ignore a lot. You can be very contrarian by following the data and make a lot more money.

Ryan Miller  

Yeah there's a saying that I've adopted, is follow the trend lines and not the headlines. So I think that's exactly what we're talking about. Is just saying, look, the trend is your friend as long as you're on the right side of that transaction, but the trend is your friend. But sometimes, not always, headlines are and I, or we shouldn't say that those headlines are right or wrong, but it's just saying it's probably more trustworthy to follow good analysis than a well crafted news clip. Would you agree? 

Andrew Einhorn  

I 100% agree. And you got to remember why the news talks about certain things, right? Like they're, they're not motivated by making you smarter. They're motivated by ad revenue that they can sell. And they sell more ads when they get more clicks and more volume. And they get more clicks and volume by talking about scandalous stuff, ooh, you know, Elon's battle with Brazil, you know? Or what's the latest scandal going on behind the scenes at OpenAI? And really firing it's not in your best interest. They just want eyeballs and they cover the same 30 stocks again and again, because they get the best volume. But there are 6000 other stocks out there. Many of them are doing much better. There's at least 10 that have outperformed Nvidia this year. Probably couldn't name any of them, and it's a shame that the news doesn't cover it, but if you follow the data, you'll be able to see that.

Ryan Miller  

Right? So as we wrap things up, is there anything else you'd like our fans to know? Anything at all, ways to connect with you? Anything at all? 

Andrew Einhorn  

Yeah, you find us very easily. It's levelfields.ai. Go to the website and check it out. We have promo code for those that want a little bit of a discount or listen to the podcast. Just type in the word podcast and the number 23 when signing up pretty cheap to get going on the level one, the level twos, you know, for more premium users that want a little bit more help, they want us to kind of synthesize the data. And you know, anybody else that out there who is on the venture capital side? If you're interested, you can get in touch with us. We're typically always doing some new round of financing or funding, as most tech startups are, so just email support@levelfields.ai.

Ryan Miller  

Brilliant man. So just to synthesize everything, differentiate yourself with your investors, a big part of that is using technology, levelfields.ai is certainly one of those things that allows you to synthesize 10s of 1000s of lines of information that's already curated and trained to really help make proper calls. The second thing that we talked about is just expand your analysis to be ready for trades, do those around events as well? And third, follow the trend lines, not the headlines. You do these things, and you too will be well on your way in your pursuit of Making Billions.

Ryan Miller  

Wow, what a show, I hope you enjoyed this episode as much as I did. Now, if you haven't done so already, be sure to leave a comment and review on new ideas and guests you want me to bring on for future episodes. Plus, why don't you head over to YouTube and see extra takes while you get to know our guests even better. And make sure to come back for our next episode, where we dive even deeper into the people, the process and the perspectives of both investors and founders. Until then, my friends, stay hungry, focus on your goals and keep grinding towards your dream of Making Billions.