Data beats opinion >>> your weekly update on the alternative data space

1. Dataset of the week: A Chinese transaction data provider.

2. Case study: Online data showed Fitbit lost ground to Garmin in Q4 2016.

3. Innovators: “Alternative Data for Alpha” report from Greenwich Associates.

4. Events: Artificial Intelligence & Data Science, 1-2 March 2017, London.

5. News articles of the week: computer-driven hedge funds, investors ignore big data at their peril.

6. Update on Eagle Alpha’s offering: Data Sourcing.

1. Dataset of the week: A Chinese transaction data provider.

Vendor Overview: This provider produces indicators on credit card data. There are 10+ indices to choose from e.g. an economic automobile index and a luxury automobile index. Indices are delivered in xlsx format and can be updated in 3 ways:

  • National Monthly.
  • National Weekly.
  • Regional Monthly.

Dataset Overview:

  • History: Since 2011.
  • Geography: China.
  • Delivery: Xlsx.

Alpha Use Cases:

  • These indices are leading indicators for the China consumer industries which cover a broad range of industrial segments, including Real Estate, Automobile, etc.
  • The vendor also creates unique indicators for several industries, such as Luxury Retail and Jewelry.

 Our Data Directory has 491 providers. Contact us for more information – enquiries@eaglealpha.com

2. Case study: Online data showed Fitbit lost ground to Garmin in Q4 2016.

On 19 January 2017, we published a research report on the wearables market highlighting that Fitbit lost ground to peers during the quarter.

The figure below shows how Garmin are capturing share of bestsellers from Fitbit in the activity tracker segment. Further to this Fitbit has reduced the average price of its activity trackers YoY while Garmin have increased theirs. It was a similar picture in the running watch segment with Fitbit losing significant share to Garmin despite heavy reductions in the average selling price. Following analysis of our proprietary online data we concluded that the loss of share would have negative implications for sales momentum.

On 30 January 2017, Fitbit announced preliminary fourth quarter results, stating revenues would come in at $572m to $580m. This was well below its previous guidance range of $725m to $750m, confirming the outcome of our analysis. CEO James Park said “we have experience softer-than-expected holiday for trackers in our most mature markets” he continued “we are confident this performance is not reflective of the value of our brand”.

Contact us to learn more about this report – enquiries@eaglealpha.com.

3. Innovators: “Alternative Data for Alpha” report from Greenwich Associates.

On 31 January 2017, Greenwich Associates published a report titled “Alternative Data for Alpha” after interviewing 69 U.S. – and European-based CIOs, portfolio managers and traders at asset management firms.

Greenwich Associates mentioned that “with data access so ubiquitous, finding the needle in a haystack that no one else has found often feels impossible. This is where alternative data enters the picture.”

Asset managers and fintech companies have been using social media sentiment analysis and crowdsourced researched, but should also start exploring other categories like logistics data, private company business performance and satellite imagery.

There are several factors that are limiting the adoption of alternative datasets, namely concerns over cost, integration and data completeness. But asset managers and third party providers are solving these issues in order to find an edge over the competition.

4. Events: Artificial Intelligence & Data Science, 1-2 March 2017, London.

This event is hosted by Newsweek and IBT in the City of London. It will be attended by alternative data providers, technologists, academics and representatives of asset management firms.

Eagle Alpha’s CEO Emmett Kilduff will participate in a panel discussion with Sylvain Champonnois of BlackRock SAE, Mark Makepeace of FTSE Group and John Macpherson of BMLL on the topic of “The bifurcation between small players using third party market flow data, and large hedge funds with in-house research teams.”

 

5. News articles of the week: computer-driven hedge funds, investors ignore big data at their peril.

Computer-driven hedge funds join industry top performers.

Ahead of the Curve: Investors ignore big data at their peril.

6. Update on Eagle Alpha’s offering: Data Sourcing.

Explore the best alternative datasets selected by our data sourcing team, receive tailored insights via 1-on-1 advisory calls and attend our unique dataset showcase events.

Until next week,

Eagle Alpha.

www.eaglealpha.com