Quants have been using various statistical tools for years, but the next-generation algorithms will allow asset managers to combine and analyze different datasets at the same time (e.g. traditional financial, web-crawled and satellite data).
The Bank of England is one of the first major institutions actively using alternative data sources in its work. In 2011, the Bank published a paper titled “Using internet search data as economic indicators” where the benefits of using online search data were identified. These are:
TABB Group, an international research and consulting firm focused solely on capital markets, published a new report called “Capturing Alternative Alpha: The Rise of Alternative Data Sets”.
Eagle Alpha analysts have spent over two years finding the best way to use online search data to predict economic indicators. We have devised our own proprietary methodologies that leverage all relevant academic research, as well as accepted best practice in the field.
By a 3-to 2 vote, the Federal Communications Commission (FCC) ruled that broadband providers like Comcast and AT&T will have to obtain permission in order to collect and distribute private data.
Card spend on new houses increased across all Tier cities in September 2016, according to Eagle Alpha’s Chinese credit card data partner.
Paul Tudor Jones, the founder of Tudor Investment Corp., is betting on data and machine learning to drive the profits of his $10.6 billion hedge fund, Tudor Investment Corp.
On the 1st of June 2016, the International Data Corporation (IDC) updated their smartphone shipments growth forecast to 3.1%, which represented a 2.6% drop compared to the previous forecast.
It depends on how many firms a given dataset has information on. Credit card transaction data has been known to provide a strong signal on revenues as many firms and many users are covered.
Eagle Alpha’s most recent events had 6 alternative data companies pitch to buyside firms in NYC (29 Sept 2016) and London (27 Sept 2016). Each provider gave an overview of their offerings, presented three case studies, and responded to Q&A. Summaries of presentations are presented below:
Most buyside firms typically start by nominating or recruiting an individual to champion their initial alternative data efforts. When a demonstrable return on investment is seen, firms then seek to expand the team.
