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:
Michael Beal, the CEO of Data Capital Management (DCM), delivered a presentation on the future of investing in the data economy - video below. He discussed the approach used by DCM and outlined the major players within the data economy.
The Boston Consulting Group (BCG) published the attached report in order to investigate the state of the global asset management industry. The first chapter is devoted to a summary of financial performance and a discussion of competitive trends.
Fundamental data can often be a lag or at best coincident indicator of an asset value, but when combined with alternative data such as investor positioning/sentiment we can build a much clearer outlook for future price direction.
Gene Ekster, CFA is Eagle Alpha’s advisory panel member who works with asset management firms and data providers in a consulting capacity to help integrate alternative data into the investment process.
