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”.
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.
Expert Networks were the last major change to the fundamental research process. There is mounting evidence that alternative data will be the next major change.
I've seen what appears to be an inflection in the last few weeks and months, so I'm not sure the question is apt. I think the biggest reason asset managers haven't taken advantage of alternative data has simply been the underperformance of the industry overall in the past 12-18 months.
Matthew Granade, Point72’s Chief Market Intelligence Officer, was interviewed by Business Insider on how his firm uses alternative data and approaches quantamental investing.
Quants and quantamental firms have been leveraging alternative data for years. Why haven’t more firms with fundamental strategies started alternative data pods / teams?
Quants and quantamental firms have been leveraging alternative data for years. Why haven’t more firms with fundamental strategies started alternative data pods / teams?
We arranged this interview with Mark Townsend in order to understand the current recruitment trends within the asset management industry.
Joseph Hooley, chairman and CEO of State Street Corporation, in a recent article for Institutional Investor gave three examples of how investors can use alternative data sources to identify new opportunities as well as potential risk exposure:
