Eagle Alpha has released a new white paper authored by Gene Ekster, CFA on the role that non-traditional data research, known as alternative data, is beginning to play on the buy-side. The paper discusses how datasets such as point of sale transactions, web site usage, municipality records, social media data and similar information are being utilized by traditional long-short funds, quantitative hedge funds and also mutual funds.
The paper covers several aspects of the developing alternative data ecosystem including:
Building an in-house capability
Alternative data R&D process flow
Computing infrastructure and the technology stack
Research & analytics providers
Alternative data compliance
Best practices
“An increasing number of funds are purchasing raw or aggregated datasets and building internal alternative data R&D groups,” said Mr. Ekster. “This move into data driven investing is an unstoppable transformation with benefits that will ripple across the investment spectrum.” Components of the white paper first appeared as articles published in Integrity ResearchWatch.
The 15 page white paper sheds light on a data economy that has been changing from a rudimentary exchange system to a sophisticated marketplace populated with discerning vendors and intermediaries.
