Strategic Insights

Quants and quantamental firms have been leveraging alternative data for years. Why haven’t more firms with fundamental strategies started alternative data pods / teams?

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:

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.