Alternative Data Newsletter #63 – March 23rd, 2018

1. Events: Next major event to be held on March 27th in Hong Kong. We will discuss the practical aspects of alternative data with speakers from Point72, Oasis Capital and Petrel Capital.

2. Dataset Analytics: The categories that received the most views on our database over the last three months are: 1) Business Insights; 2) Consumer Transactions; and 3) Trade.

3. Data Hunting Advisory: What are the best app traffic and engagement datasets?

4. Dataset Roadshows: A new employment data provider in NYC on March 23rd.

5. Data Insights Q4 lookback: 73% hit rate on short term signals.

6. Bespoke Projects: How are US tariffs on steel and aluminum impacting trade shipments of those products?

7. Data Forum: Contact us to read meeting notes of the third Data Forum held on March 20th.

8. Featured Articles: 1) Maintain the Edge With Alternative Data; 2) Numerai will give $1 million in crypto tokens to Kaggle users who sign up to its crowdsourced hedge fund; 3) Lawmakers should not yet intervene on big data – European agencies.

1. Events 

The next events are:

  • March 27th, Hong Kong: An event to discuss the practical aspects of alternative data including speakers from Point72, Oasis Capital and Petrel Capital. Limited spaces left.
  • April 5th, webinar: ESG data use cases.
  • April 11th, London: Our data showcase event. 25% on tickets to this event are available until tonight.
  • May 30th, NYC: Our first data forum conference.
  • May 31st, NYC: Our data showcase event.

Register your interest by emailing enquiries@eaglealpha.com.

2. Dataset Analytics

Eagle Alpha is a leading aggregator of alternative datasets.

The categories that received the most views on our database over the last three months are below. Contact us for the profiles of the specific datasets within each category.

  • Business Insights (12.3%).
  • Consumer Transactions (6.7%).
  • Trade (6.6%)

Our five person data hunting team is calling data vendors every day to enhance profiles in our database. We currently have profiles on 696 alternative data vendors. The database will soon be available via an API – if you want to build, or complement, an internal catalogue please contact us for more information. Email: enquiries@eaglealpha.com.

3. Data Hunting Advisory

Every month we host calls with clients to discuss their specific alternative data needs.

Examples of client requests:

  • What are the best app traffic and engagement datasets?
  • What are the best datasets for upcoming IPOs?
  • What are the best consumer transaction datasets for EMEA and APAC regions?

Contact us to speak to our data hunting team: enquiries@eaglealpha.com.

4. Dataset Roadshows

Every month we host 1-on-1 meetings between asset managers and data vendors around the world.

Upcoming roadshows (March 23rd, NYC):

Employment data provider: This new vendor offers a rich and unique view of the global labour force at a company, industry, and global level. The vendor maps half a billion individuals, more than 10,000 global public companies, and millions of private and non-corporate entities(government, education, military, healthcare, etc.) in order to capture workforce dynamics.

If you would like us to introduce you to this data vendor during their roadshow, please email enquiries@eaglealpha.com. 

5. Data Insights

Eagle Alpha’s analysts publish actionable research reports.

Data Insights Q4 lookback: 73% hit rate on short term signals. Ahead of Q4 earnings season Eagle Alpha’s Data Insights team published 15 signals across 12 US Consumer and Tech stocks. Of these 15 signals, 11 proved accurate, for a hit rate of 73%, and three signals missed. The outcome for one signal was neutral, or too soon to call.

Of the 15 signals, 13 were for consumer companies and 2 were in the tech sector. The hit rate for consumer names was 69% while the hit rate for the two tech companies was 100%. Twelve of the signals used search data while three signals were based on web scraped data.

The five stocks with the largest moves on earnings, from the date of our published report, were Finish Line 24%, FitBit -21%, Chipotle -17%, GoPro -15% and Express 12%. We correctly called the direction of revenue or same store sales beat/miss for four of these five– Finish Line, Fitbit, Chipotle and Express. For Express, we had a negative view on company same store sales, which proved to be correct, but the stock actually reacted positively to results due to other fundamentals in the business.

GoPro was the one big mover where the signal proved inaccurate. The short-term signal was positive, with a negative longer-term outlook. We interpret this as a neutral signal, but results ultimately disappointed and the stock fell.

Eagle Alpha’s latest reports:

6. Bespoke Projects

Eagle Alpha does Bespoke Projects for clients that are relevant to specific research questions.

For example, how are US tariffs on steel and aluminum impacting trade shipments of those products?

Previous examples of research questions include:

  • How can alternative data help in tracking a company’s pricing power and industry competition?
  • How can satellite data be applied in our investment analysis?  What are the types of satellite data and how is it used?
  • How can Eagle Alpha help me determine the predictive potential of a dataset?

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

7. Data Forum

Our third online meeting was held on March 20th. 20 buyside firms discussed the standardization of trial agreements. The topics that were discussed include the below. A working group has been set up to create a standardized document.

Data

  • Case studies: detailed explanation of basis of the headline backtest results used in marketing materials.
  • History.
  • Timestamps.
  • Mapping.
  • Documentation.
  • Discontinuity.

Legal

  • Data provenance.
  • Assuming liability.
  • Indemnity.
  • Data deletion.
  • Confidential info.
  • Governing law.
  • Warrant.

Trial

  • Length.
  • Restrictions.

Other

  • Customer service.
  • Reverse engineering.
  • Marketing.

Contact us to read the meeting notes from this call. 

8. Featured articles

Maintain the Edge With Alternative Data.

Numerai will give $1 million in crypto tokens to Kaggle users who sign up to its crowdsourced hedge fund.

Lawmakers should not yet intervene on big data – European agencies.

Since 2012 we have enabled asset managers to obtain alpha from alternative data – contact us to discuss your needs.

Eagle Alpha