Alternative Data Newsletter – January 11th, 2018

1. Data Sourcing: Our next “Alternative Data Showcase Week” will be held in London on the 11th of April. Thank you to our Gold Sponsor, Simmons & Simmons for hosting.

2. Analytical Tools: Eagle Alpha’s web query tool used to analyse sentiments around iPhone 8 and iPhone X features.

3. Data Insights: Our Search Signal indicator correctly saw a weakening of interest for Tesco products leading into the Christmas period.

4. Bespoke Projects: What are the best alternative data sources for following McDonald’s traction with consumers?

5. Innovation Center: To download all of the decks from our one-day event dedicated to how equity investors are using alternative data, please click on this link.

6. Featured Articles: 1) Active Management: The best of both worlds? 2) News and narratives in financial systems: exploiting big data for systemic risk assessment; 3) Quantopian: Searching for the Vitalik Buterin of quant finance.

7. Alternative Data Positions: An Alternative Data Manager with over 15 years of experience has recently left a major hedge fund and is now considering opportunities at buy and sell-side firms in the New York City area. Please contact us for additional information.

 


1. Data Sourcing

  • Database: Featured dataset – ESG data provider.

This vendor provides a robust ESG (environmental, social, governance) dataset to institutional investors. They rate over 20,000 companies across a spectrum of ESG key performance indicators. Each KPI is represented by a score of 0-100 and can be used in various ways across investment strategies. Ratings begin as of 2009.

Our database has detailed profiles on 678 providers and is available via an API. Contact us for more information – enquiries@eaglealpha.com.

  • 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.
  • Events: Eagle Alpha is delighted to announce that following the success of our Alternative Data Showcase Week in New York last December, our next Showcase Week will be held in London on the 11th of April. The week will consist of high-quality alternative data vendor presentations, world-class panels and 100’s of 1-on-1 meetings between asset managers and data vendors. Thank you to our Gold Sponsor, Simmons & Simmons for hosting. Get in touch with us at enquiries@eaglealpha.com to register.

2. Analytical Tools

At the end of September 2017, Eagle Alpha published a fundamental report on iPhone 8 and iPhone X. We leveraged our web query tool which analyses over 90 million web sources to quantify certain aspects of the scandal.

The figure below shows that share of mentions was dominated by the price of the phone. Our analysis over the course of the first week also showed negative net sentiment around face ID and the infamous “notch”. We concluded that ‘lack of enthusiasm for the X features and pricing does not bode well for consumer desire to own the phone.’

3. Data Insights: Our Search Signal indicator correctly saw a weakening of interest for Tesco products leading into the Christmas period.

Tesco shares were off 5% following the release of a weaker than expected Christmas trading statement. Tesco reported strong grocery sales but were let down by poor trading in general merchandise and disruption to tobacco sales.

Our search signal (figure below) published on the 6th of December saw a weakening of interest for Tesco products leading into the Christmas period. This was driven primarily by weakness in Toys, a seasonal product for Tesco which helped them beat last year. This may have led to the weaker than expected general merchandise figures Tesco reported today.


4. Bespoke Projects

What are the best alternative data sources for following McDonald’s traction with consumers?

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

Previous examples of research questions include:

  • How can alternative data be used to analyze US shopping center REITs?
  • What can Eagle Alpha’s employment dataset tell us about demand for workers who are skilled in working with Tableau or Adobe software products?
  • Which small cap stocks in my industry show deteriorating credit quality and increased traffic to their web pages on a credit risk management website?


5. Innovation Center

Event Overview

On November 30th 2017, Eagle Alpha organized the first one-day event dedicated to how equity investors are using alternative data. The event was hosted by FactSet at their London offices.

Topics & Decks

The following topics were covered:

  • Case studies that evidence alpha for equity investors.
  • Using alternative data to build time series indicators for equities.
  • Using alternative data to produce actionable reports for equities.
  • Techniques to extract actionable insights from alternative data.
  • Examples of equity research projects.
  • Deeper dive into some of the most popular categories: 1) consumer transaction data; 2) geo-location data; 3) satellite data; 4) app data; and 5) sentiment data.
  • Unique datasets that are coming to market and examples of use cases. Three examples: 1) a consumer transaction dataset for US consumer stocks; 2) a Chinese ticker based dataset; and 3) a global shipping dataset.
  • Legal and compliance considerations regarding alternative data.
  • A panel discussion with professionals that have experience working with alternative data. Speakers: Mark Ainsworth (Schroders), Alexander Ions (Rosenberg Equities, Axa IM) and Oliver Van Hirtum (APG).

To download all of the decks from the day, please click on this link.


6. Featured articles

Active Management: The best of both worlds?

News and narratives in financial systems: exploiting big data for systemic risk assessment.

Quantopian: Searching for the Vitalik Buterin of quant finance.


7. Alternative Data Positions

An Alternative Data Manager with over 15 years of experience in the financial industry and deep knowledge of data management and analysis has recently left a major hedge fund. He is now considering opportunities at buy and sell-side firms in the New York City area. Please contact us for additional information.

Data beats opinion,

Eagle Alpha