Tue, May 17, 2022
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Half of investment managers use alternative data, another quarter planning to do so this year

Thursday, May 23, 2019

Laxman Pai, Opalesque Asia:

Asset managers are making greater use of "alternative" data sources, ranging from social media sentiment to crowd-sourced data, to gain an edge, said a study.

71% of asset managers believe that using alternative data gives them an investing edge over competitors, according to a new study by Greenwich Associates commissioned by business information provider IHS Markit.

74% of firms surveyed agreed that alternative data is starting to have a big impact on institutional investing, demonstrating its valuable explanatory power to both quantitative and fundamental investment models.

Around half of investment managers are currently using alternative data with another quarter planning to do so in the next 12 months, according to the research.

Alpha and long-term competitive edge found in alternative data

Nearly 30% of quantitative funds attribute at least 20% of their alpha to alternative data, the study revealed. Furthermore, 42% of all asset managers believe the alpha edge they achieve by using alternative data lasts for at least four years.

Driven by the value they see, investment firms are spending more on procuring alternative data. In 2018, budgets increased by 52%, on top of an increase of 76% the previous year, according to the study.

"Even more revealing than the high level of value asset managers attribute to alternative data, is that they also believe using it helps them achieve long lasting competiti......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Long/short equity hedge fund with bear market experience has a winning quarter[more]

    B. G., Opalesque Geneva: Experience during a Russian bear market lasting five years enabled Christian Putz to identify certain investment patterns in the market which he now applies to his current investment strategy. London-based ARR Inv

  2. Schroders acquires European renewable infrastructure manager Greencoat Capital[more]

    Laxman Pai, Opalesque Asia: British multinational asset management company Schroders has completed the acquisition of a 75% shareholding in Greencoat Capital, one of Europe's largest investment managers dedicated to the high-growth renewable infrastructure market. The remaining 25% is owned by Gr

  3. Opalesque Exclusive: Global equity manager focuses on symbiotic value chains[more]

    B. G., Opalesque Geneva: A global equity manager has made a point of focusing on the phenomenon of shrinking supply chains and avoiding zero-sum business models. London-based Tollymore Investment Partners is a private partnersh

  4. Satori Capital intros energy transition fund, a long/short equity strategy[more]

    Laxman Pai, Opalesque Asia: Dallas-based alternatives manager founded on the principles of conscious capitalism, Satori Capital has launched Satori Environmental, a long/short equity strategy that primarily invests in securities impacted by the global energy sector's shift from fossil-based s

  5. The Big Picture: With the war, E, S, and G have collectively moved back to the fore[more]

    B. G., Opalesque Geneva: In this interview, Dr. Patrick Welton, founder and CIO of Welton Investment Partners, offers his observations on the major macro themes expected to affect the comm