Blog

Data Privacy and Alternative Data: Apple, Google, GDPR et al.

Data Privacy and Alternative Data: Apple, Google, GDPR et al.

As a leader in the alternative data space, we make it a priority to stay up to date with legal and compliance issues across the alternative data landscape. A recent ‘Spotlight’ paper we published called Data Privacy and Alternative Data focuses on the data privacy movement and how it has developed over the past several years. In this paper we discuss the restriction around data collection and distribution being implemented both at a state and regional level as well as a company level where “Gatekeepers” are proving to be more influential than ever. This blog provides a run-down of several of the most noteworthy pieces of legal and compliance mentions from the paper.

Implementing a Data Strategy in Private Markets (CAIA Collaboration)

Implementing a Data Strategy in Private Markets (CAIA Collaboration)

For many PE funds, there are strong push factors driving the move to alternative data. Historically low-interest rates are pushing more investors to consider PE as a viable investment, but how does a PE firm stand out? To stand out you need to show that your data and technology approach can generate superior returns. Firms need to do something differentiated.

Navigating Geo-Location Data – Part 1: The Opportunity

Navigating Geo-Location Data – Part 1: The Opportunity

We have seen unprecedented growth in client interest and use of Geo-location data since the beginning of 2020, to the extent that it is now one of the most popular alternative data categories for our clients. This has not always been the case. Traditionally consumer transaction and web crawled data claimed that mantel. We are seeing elevated interest in the category from our traditional customer base in the hedge fund and asset manager industries, but also private equity funds, corporate, central banks, and government agencies. This unprecedented growth in interest has unquestionably been driven by the COVID-19 pandemic.

Alt Data and China: What Investors Need to Know

Alt Data and China: What Investors Need to Know

Eagle Alpha has been fielding inquiries from clients for many years on alternative datasets that either originate in China or can address investment use cases in China. In general, the queries are broad macro use cases to track the Chinese economy or datasets that can be used to monitor consumer spending trends. Within consumer spending the majority of investors have looked for information on western brands that have a large exposure to the region or have China as a significant part of their quarterly revenue growth. We have pulled together content across data strategy related to these themes but also address other datasets that investors are interested in. Any discussion on alt data involves complex legal issues and when it comes to China the issues can be particularly tricky. We will highlight relevant content on the subject.

The Low Down on Consumer Transaction Data

The Low Down on Consumer Transaction Data

Background Consumer transaction data is one of the most popular and widely deployed types of alternative data by investment managers. The data is also used extensively by corporates with exposure to the retail segment of the economy. Quants and discretionary managers...

Alternative Data and Elections

Alternative Data and Elections

The US election is rapidly approaching, and investors are trying to position themselves by using alternative data. Some people argue that it is futile to try and position your portfolio based on the potential outcome of an election. The chart below shows that the buy and hold market index has worked historically. In recent years only the Bush administration saw negative returns, which was driven by the financial crises. However, within the Bush term, Oil companies and Defence stocks outperformed the averages. Similarly, during the Obama years, consumer discretionary stocks returned 338% while energy stocks returned just 53%. Sectors and stocks matter and alt data can help formulate a view of election outcomes.

A 360 On ESG For Investing

A 360 On ESG For Investing

ESG has been possibly the most consistent topic of interest to our clients over the last 18 – 24 months. That’s reflected in the AUM numbers with global ESG AUM estimated at $30 trillion according to GSI Alliance. The US alone accounts for $12 trillion of this and the AUM in the region doubled from 2014 to 2018 to $12bn. GSI research also indicates that the fastest growing strategies are ESG integration and negative/exclusionary screening, both of which can be greatly enhanced by incorporating alternative datasets.