Multi-Industry Simplex : A Probabilistic Extension of GICS

Accurate industry classification is a critical tool for many asset management applications. While the current industry gold-standard GICS (Global Industry Classification Standard) has proven to be reliable and robust in many settings, it has limitations that cannot be ignored. Fundamentally, GICS is a single-industry model, in which every firm is assigned to exactly one group - regardless of how diversified that firm may be. This approach breaks down for large conglomerates like Amazon, which have risk exposure spread out across multiple sectors. We attempt to overcome these limitations by developing MIS (Multi-Industry Simplex), a probabilistic model that can flexibly assign a firm to as many industries as can be supported by the data. In particular, we utilize topic modeling, an natural language processing approach that utilizes business descriptions to extract and identify corresponding industries. Each identified industry comes with a relevance probability, allowing for high interpretability and easy auditing, circumventing the black-box nature of alternative machine learning approaches. We describe this model in detail and provide two use-cases that are relevant to asset management - thematic portfolios and nearest neighbor identification. While our approach has limitations of its own, we demonstrate the viability of probabilistic industry classification and hope to inspire future research in this field.Comment: 17 pages, 10 figure

Reintroduction strategy for the Andean Condor Conservation Program, Argentina

The Andean condor Vultur gryphus is the largest bird in the world with flight capacity. For thousands of years the Andean condor has been honoured as a sacred link between space and humans by indigenous communities. In the last 100 years, the range of this emblematic species contracted rapidly and the Andean condor was pronounced extinct at both ends of its endemic South American range, in Venezuela and on the Atlantic coast of Patagonia. The Andean condor appears in Appendix I of the Convention on International Trade in Endangered Species of Wild Fauna and Flora and is listed as in ‘Danger of Extinction’ by the United States Fish and Wildlife Service. In addition, according to the International Union for Conservation of Nature, this species is classified as Near Threatened. In 1991, the Andean Condor Conservation Program (PCCA: Programa Conservación Cóndor Andino) was founded in Argentina. The PCCA started by performing genetic analyses and documenting the condor population in zoological institutions in a Latin American regional studbook. The PCCA then developed artificial-incubation programmes and techniques for hand rearing birds without human contact, and worked to rescue and rehabilitate wild condors. The PCCA has succeeded in rearing 57 chicks and rescuing 197 wild condors. This paper describes the strategy used by the PCCA to reintroduce 160 condors throughout South America.Fil: Astore, Vanesa. Fundación Bioandina Argentina; Argentina. Jardín Zoológico de la Ciudad de Buenos Aires; ArgentinaFil: Estrada Pacheco, Rayén. Provincia de Entre Ríos. Centro de Investigaciones Científicas y Transferencia de Tecnología a la Producción. Universidad Autónoma de Entre Ríos. Centro de Investigaciones Científicas y Transferencia de Tecnología a la Producción. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Santa Fe. Centro de Investigaciones Científicas y Transferencia de Tecnología a la Producción; Argentina. Fundación Bioandina Argentina; ArgentinaFil: Jacome, Norberto Luis. Fundación Bioandina Argentina; Argentin