Wall Street’s War on Alternative Data: Market Trends, Innovation and Sales Insights
I recently had the opportunity to speak in a few investment conferences last month both in Chicago and New York (Morningstar/Benzinga/BattleFin). While each Conference had a different target audience — from fundamental managers, advisors and traders to institutional buy-side firms — one theme was commonplace: The rise of Alternative Data.
In this article, I share thoughts and lessons learned about this emerging industry including market insights and who’s who in the buyers/vendors game.
The Market
In an industry where almost every player has access to the same (or similar) core financial and fundamental data, investment firms look for Alternative Data seeking differentiated insights into companies not found in filings, earnings calls or fundamental datasets.
Until recently, the usage of alternative data has been confined mainly to the realm of quantitative investment managers, as these firms were best suited to obtain, clean and process this data. Now, however, alternative data is beginning to go mainstream, with increasing interest from fundamental and hybrid asset managers [1].
Alternative Data is Untapped Alpha. The biggest opportunity for investors in this decade comes from the signals buried…
