Whether you are managing a hedge fund trying to find innovative sources of alpha or are an analyst looking to future proof your company’s financial investments, as big data continues to disrupt the investment research landscape, getting on top of these alternative datasets as early as possible is the key to capturing the immense alpha left in this data.
When it comes to using web data as alternative data for investment decision making, one topic rules them all: compliance.
Regulatory compliance is such a pervasive issue in alternative data for finance, that it is often the number one barrier to investment firms using web data in their decision making processes. And matters aren’t helped by the regulatory ambiguity.
In this article, we’re...
Over the past few years, there has been an explosion in the use of alternative data sources in investment decision making in hedge funds, investment banks and private equity firms.
These new data sources, collectively known as “alternative data”, have the potential to give firms a crucial informational edge in the market, enabling them to generate alpha.
Investors understand the importance of high-quality information. It minimizes risk, empowers decision-making, and enables investors of all sizes to obtain alpha - like the old adage, knowing is often half the battle.
Knowing this, alternative data providers wield vast, untraditional datasets derived from hundreds of millions of sources, not only enabling asset managers to consistently obtain...
Throughout the history of the financial markets information has been power. The trader with access to the most accurate information can quickly gain an edge over the market.