NN Investment Partners, asset management division of NN Group N.V. with AUM of approximately $224 billion as of September 2016, pointed out the gains it achieved by using online news and sentiment analysis in its investment process.
There has been an increasing momentum on the topic of alternative data. The Economist, Fast Company, HFM Week (attached) and Wall Street Journal have all recently published articles with an industry overview. Below are interesting datasets that were mentioned.
On the 13th of October 2015, we published a research note on U.S. auto lenders highlighting customer service issues. Santander Consumer (SC) had the worst consumer complaint and review profile, followed by Ally Financial (ALLY). The two companies had:
Online reviews have become mainstream and consumers are increasingly relying on them when making decisions. This article presents the latest research on the following topics: distribution of negative and positive reviews, sentiment of online reviews and evaluation of the impact on sales.
Twitter data is used by financial industry professionals in a variety of ways. It has been extensively used for fundamental and consumer analysis since the SEC confirmed that companies could use Twitter to announce key information.
Eagle Alpha has spent over 2 years perfecting indices based on online search activity. By creating baskets of online search terms related to certain topics, Eagle Alpha can build indices that improve existing models and indicators with clients also being able to create proprietary indices.
80% of respondents who participated in BrightLocal’s 2015 Local Consumer Review Survey admitted they would trust online reviews as much as personal recommendations. Lee, Park and Han’s study showed that purchase intention increases with the perceived credibility of consumer reviews.
Over 7,000 articles have been written on the subject of sentiment analysis, primarily in the last decade. The asset management community has been experimenting with the use of sentiment analysis, specifically in analyzing the polarity of sentiment expressed in social media and news media.
