Sat, May 15, 2021
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

82% of surveyed hedge funds use alternative data, but not without concerns

Wednesday, September 11, 2019

Laxman Pai, Opalesque Asia:

Over 80% of surveyed hedge funds are using alternative data for detailed industry analyses, though data cost and quality issues remain, said a study.

According to Lowenstein Sandler's hedge fund industry survey, 82% of hedge funds are already using alternative data in some capacity, and 75% of respondents are using it to make better investment predictions.

The first survey of its kind from the firm's Investment Management Group revealed that with more funds using alternative data, the results evidence an increasing interest in using newer data sources such as web scraping and biometrics to stay competitive.

But, factors such as new regulations and privacy laws, cost and time investment, and the ability to distinguish relevant information from large volumes of data could stymie those plans for growth, said the report authored by Peter D. Greene, partner and Vice-Chair of Lowenstein's Investment Management Group, with contributions from Benjamin Kozinn, a partner in that group.

"It is not surprising to me that an overwhelming majority of funds are using alternative data," said Greene. "What is interesting is how funds of various sizes are using it and how they plan to expand their use in the future. In a changing industry, it is more important than ever to learn what alternative data can do, while also acknowledging the limitations and concerns that come with using such data."

98 % of respondents who use alternative ......................

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. U.S.: Hedge funds facing Biden tax threat grab toehold in Puerto Rico[more]

    From Bloomberg: With Democrats pushing for higher taxes on the richest Americans to fund President Joe Biden's infrastructure and climate initiatives, hedge fund managers are taking refuge in Puerto Rico. ExodusPoint Capital Management and Millennium Management have established subsidiaries on t

  2. SPACs: SoftBank-backed Better to go public in $7.7bn SPAC deal, Turmoil in the SPAC market, SPACs that raise a lot of money will struggle to find startups, Biotech firm Ginkgo to merge with Harry Sloan-led SPAC in $17.5 billion deal[more]

    SoftBank-backed Better to go public in $7.7bn SPAC deal From PE Insights: SoftBank Group Corp-backed Better HoldCo said on Tuesday it will go public through a merger with a blank-check firm sponsored by investment firm Novator Capital, valuing the mortgage startup at $7.7bn. As p

  3. Hedge fund Tiger Global beats out Silicon Valley VCs, invests in 110 startups so far[more]

    From Business Insider: Tiger Global, a $65 billion hedge fund, is squeezing out venture capital firms to invest in startups. The company has taken part in 110 startup financings so far in 2021, according to PitchBook. Venture capitalists say its speed and sky-high valuations lead to its success

  4. SPACs: Why the 'SPAC Mafia' hedge funds aren't worried about SEC regulation, Bill Ackman's cagey SPAC update sends shares soaring as investors dream up a mega-deal, Arqit raising $400m with a SPAC to launch quantum encryption satellites in 2023[more]

    Why the 'SPAC Mafia' hedge funds aren't worried about SEC regulation From Business Insider: After a yearlong bout of SPAC mania, the red-hot market for blank-check companies is cooling down as regulators direct their attention to it. March was a record-breaking month for special-purpose

  5. Private strategies pay off for Tiger Global, other hedge fund titans[more]

    From Institutional Investor: Hedge funds' strategies to invest in private markets have been driving returns at a number of firms this year. Third Point, Greenlight, Tiger Global, and Maverick received big boosts in the first quarter from their private investing strategies. That shouldn't be a