Alternative Data Newsletter – December 14th, 2017

1. Data Sourcing: Many thanks to our sponsors of the BIG Alternative Data Showcase Event: Lowenstein Sandler, Deloitte, S&P Global Market Intelligence, Crux, Superfly Insights.

2. Analytical Tools: Eagle Alpha’s web query tool used to analyse the impact of track the frequency of mentions of major retailers in conversations of the best-selling sneakers.

3. Data Insights: Today we published a report on China Luxury entitled ‘transaction slow as consumers shift to higher priced items’. 

4. Bespoke Projects: Which small cap stocks show increasing mentions in mainstream media and social media?

5. Innovation Center: Recap of Eagle Alpha’s presentation in London at an event regarding how asset managers leverage satellite imagery data.

6. Featured articles: 1) AQR to explore use of ‘big data’ despite past doubts; 2) Quant firms will have to adapt to prosper in the new datasets environment; 3) Ken Griffin, Citadel founder and CEO, about the importance of having talent that can analyze large amounts of data.

 

1. Data Sourcing

1.1 Database: ESG is becoming a key theme for asset managers in 2018.

The number of enquiries regarding ESG that our Data Sourcing team receives has increased significantly. By the end of January we will publish a short paper that summarizes this category (sub-categories, providers, case studies, trends etc.).

Our database has detailed profiles on 23 ESG data providers and 669 providers overall. It is available via an API. Contact us for more information – enquiries@eaglealpha.com.

1.2 Exclusive Datasets: In Q1 2018 we are launching a consumer transaction dataset that we have built. Contact us if you would like to provide us with early feedback on the dataset.

1.3 Advisory example: We need to understand European hotel occupancy, pricing and booking curves. Please advise us if these KPI’s can be tracked and which dataset offers the best solution.

1.4 Events: Our “Alternative Data Showcase Week” in NYC was a great success. Feedback from buyside firms and data vendors was very positive, some of them are presented below.

Buyside:

  • “You guys killed it”.
  • “The vendors were diverse and several I had not heard of”.
  • “The panels were a lot of fun”.
  • “I met several interesting companies and will be following up with them over the coming weeks”.

Data vendors:

  • “The Eagle Alpha conference was by far the best single one I have attended”.
  • “I really liked the 1-on-1 meetings which helped to discuss the dataset and opportunities in much more detail than just at the table”.
  • “The Eagle Alpha team was spot on in every area of planning and execution to ensuring that the conference had meaningful and tangible content”.
  • “The size and attention was perfect for the vendors and there were some very high quality buyers in the room”.

Many thanks to our sponsors of the BIG Alternative Data Showcase Event: Lowenstein SandlerDeloitteS&P Global Market IntelligenceCruxSuperfly Insights.

1.5 In 2018 we will organise four major data showcase events: London in April, NYC in June, Hong Kong in September and NYC in December. Contact us to learn more.

1.6 1-on-1s: Over the last two weeks we organised over 275 1-on-1 meetings. Contact us to find out which datasets had the most meetings.


2. Analytical Tools

On November 24th 2017, Eagle Alpha published a report titled “Finish Line: Alternative Data Insights into Consumer Trends.”

Eagle Alpha’s Web Query tool was used to track the frequency of mentions of major retailers in conversations of the best-selling sneakers on Twitter and relevant US blogs and forums.

Finish Line began to gain share of blog and forum mentions in late 2016 and has held onto these gains throughout 2017 (figure 1).


3. Data Insights 

Eagle Alpha’s Data Insights team publish a report today titled ‘China Luxury: Transaction Slow as Consumers Shift to Higher Priced Items.” Chinese bank card indices from our data partner were used to prepare this report. Indices refer to the collection of economic indicators based on the intelligence derived from the expenditures of China bank card cardholders in various market segments.

Analyzing bank card data we show total spend in the Chinese luxury sector has started to slow. Data also shows a shift to higher-priced luxury items. In the past changes in the bank card spend index has closely mirrored inflections in revenue for luxury companies in the region (figure 1 below).


Key Insight

The slowing growth in the luxury sector in China is likely to negatively impact luxury goods companies exposed to the region. However, the shift to higher priced items should cushion the blow for high-priced luxury goods companies such as Tiffany and Hermes.

The last five Data Insights reports are:

  • China Luxury: Transactions Slow as Consumers Shift to Higher Priced Items.
  • China Autos: Deterioration in Bank Card Spending Accelerates. 
  • Tesco: Search Indicator Highlights Potential Seasonal Weakness.
  • Finish Line: Search Indicator Implies Improving Sales Metrics.
  • HPQ: Healthier Black Friday Discounting in PC and Notebook.

Contact us to learn more about our Data Insights offering.


4. Bespoke Projects

Which small cap stocks show increasing mentions in mainstream media and social media?

Contact us to receive examples of how alternative data can address this research question – enquiries@eaglealpha.com.

Previous examples of research questions include:

  • Which small cap stocks in my industry show deteriorating credit quality and increased traffic to their web pages on a credit risk management website?How do these trends compare to trends in the number of news articles and social media comments about these companies?
  • What can Eagle Alpha’s employment dataset tell us about demand for workers who are skilled in working with Tableau or Adobe software products?
  • How can alternative data provide insights into usage trends of PayPal and Square payments?

 

5. Innovation Center

On November 29th 2017, Eagle Alpha presented in London at an event regarding how asset managers leverage satellite imagery data. Satellite data is one of the five most common categories of alternative data used by asset managers as the interpretation of satellite images into data or intelligence is useful to asset managers on many fronts e.g. general economic activity, agriculture, mining, construction and real estate, shipping, oil and gas, project monitoring and retail.

The event was attended by nine different satellite data providers along with academics working in the field. The following topics were covered:

  • Overview of satellite data.
  • Retail use cases.
  • Agriculture applications.
  • Oil storage tank monitoring.
  • Monitoring economic activity.
  • Analysis of shipping trends.

The full recap of the event is available to the clients of our Innovation Center offering. The Innovation Center offering includes: Teach-in & Training, Advisory Service, Events and Proprietary Content.


6. Featured articles

AQR to explore use of ‘big data’ despite past doubts.

Quant firms will have to adapt to prosper in the new datasets environment.

Ken Griffin, Citadel founder and CEO, about the importance of having talent that can analyze large amounts of data.

Data beats opinion,

Eagle Alpha