Alternative Data Newsletter #74 – June 21st, 2018

Summary Highlights

1. Events: Our next webinar (June 27th) will cover the topic of alternative data in the APAC region. Register your interest by emailing enquiries@eaglealpha.com.
2. Dataset Sourcing: Eagle Alpha is the exclusive distribution partner for the leading corporate aviation data vendor. It will be doing a roadshow in Chicago, Boston, CT and NYC on June 25-29.
3. Proprietary Datasets: Eagle Alpha went live with our first JV dataset in May – RevCast. The RevCast dataset provides quarterly predictions for major US consumer companies and is exclusive to Eagle Alpha.
4. Data Analytics: Eagle Alpha’s Data Analytics team correctly predicted HPQ results by using web scraped data.
5. Bespoke Projects: How can alternative data shed insights into hiring and employee turnover trends for the companies in our portfolios?
6. Data Forum: Our next working group meeting will be held on June 27th to discuss the normalized metadata schema.
7. Featured Articles: 1) The Arms Race for Quants Comes to the World’s Biggest Asset Managers; 2) Are Alternative Datasets Becoming Mainstream? 3) Pimco Looks To Data Advantage.
8. Update For Data Vendors: We published a comprehensive white paper on how vendors can sell their data to asset managers. Download it from https://selldata.eaglealpha.com.

Detailed Highlights

1. Events 
Upcoming calendar:

  • Data Forum June 27th, NYC: working group meeting to discuss the normalized metadata schema proposal.
  • June 27th, webinar: alternative data in the APAC region.
  • Data Forum July 10th, online meeting to discuss the cost of datasets.
  • Data Forum July 12th, online meeting to discuss geolocation datasets.
  • Data Forum July 17th, online meeting to finalize the standardized trial agreement.
  • Data Forum July 24th, call to discuss the concept of sharing groundtruth data.

Register your interest by emailing enquiries@eaglealpha.com.

2. Data Sourcing

Points to note:
1) The profile of one of the most popular data vendors on our platform:
This company delivers data and analytics based on purchase behaviour from a panel of 2.5 million+ US shoppers. The data is gathered from users who have agreed to share anonymized and aggregated data about their purchasing and travel behavior through analysis of their email accounts. Through maintaining the direct relationship with users, the vendor has clear and compliant, data access rights.
2) Examples of client requests:

  • What are the best alternative datasets used for due diligence?
  • What are the best social media datasets?
  • Which alternative datasets could be used to analyse store locations?

3) Upcoming roadshows:

  • June 25-29, Chicago, Boston, CT, NYC: A corporate aviation dataset is meeting funds. Eagle Alpha is the exclusive distributor of this dataset.
  • July 23-25, London; July 26, Paris; July 27, Frankfurt: An employment, location, insurance and pensions data provider is meeting funds. This vendor leverages filings with the IRS and Dept. of Labor that pertain to employee benefit plans.
  • August 20-21, London: A retail pricing and promotional data provider is meeting funds.

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

3. Proprietary Datasets

Clients get access to our proprietary datasets e.g. Eagle Alpha went live with our first JV dataset in May – RevCast. The RevCast dataset provides quarterly predictions for major US consumer companies and is exclusive to Eagle Alpha. Eagle alpha built the dataset by combining data from a prominent consumer transaction data company, with online search data and historic financials.

Since going live RevCast has outperformed backtesting. In the current earnings season RevCast has accurately captured the direction of a revenue beat or miss 66% of the time across 57 US consumer stocks. 37 of these 57 stocks beat or missed consensus revenue estimates by more than 1.5%. RevCast accurately called 22 of these material beats or misses, equating to a 59% material beat/miss capture rate. There is currently one prediction outstanding for the current earnings season for Bed, Bath & Beyond (BBBY).

To learn more about the Eagle Alpha RevCast dataset please contact us at enquiries@eaglealpha.com

4. Data Analytics
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Eagle Alpha’s Data Analytics team published a research note on HPQ in May titled “HPQ: Positive Pricing and End Demand Trends”. We highlighted that web crawled data pointed to another strong quarter for HP with positive ASP trends across products. Estimated share of bestsellers also remained positive in the quarter. With regard to the pricing for PSG we noted the strong mix effect of higher priced products and higher pricing of existing products.

Eagle Alpha’s Search Signal indicator, based on Google Search data suggested sustained consumer demand for HP products.

On May 29th HPQ reported with revenue upside in the quarter. The company noted that the personal systems group saw revenue growth of 14% and unit growth of 7%. This implies strong pricing in the quarter. In the following link the company notes that part of the ASP increase was due to a better mix of products. Please contact us for more information on our Data Analytics offering at enquiries@eaglealpha.com.

Eagle Alpha’s latest reports:

Contact us to speak to our analysts (who have over 5 years experience working with alternative data): enquiries@eaglealpha.com.

5. Bespoke Projects

Eagle Alpha does Bespoke Projects for clients that are relevant to specific research questions. For example, how can alternative data shed insights into hiring and employee turnover trends for the companies in our portfolios?
In addition, we are working on a syndicated research project regarding video game stocks. Contact us to learn more: enquiries@eaglealpha.com.

6. Data Forum

Upcoming events:

  • June 27th, NYC: working group meeting to discuss the normalized metadata schema proposal.
  • July 10th, online meeting to discuss the cost of datasets.
  • July 12th, online meeting to discuss geolocation datasets.
  • July 17th, online meeting to finalize the standardized trial agreement.
  • July 24th, call to discuss the concept of sharing groundtruth data.

7. Featured Articles

The Arms Race for Quants Comes to the World’s Biggest Asset Managers.
Are alternative datasets becoming mainstream?
Pimco Looks To Data Advantage.

8. Update For Data Vendors

1) We published a comprehensive white paper on how vendors can sell their data to asset managers. Download it from https://selldata.eaglealpha.com.

2) A standardized trial agreement document will be published in July. Contact dataforum@eaglealpha.com to obtain a copy.

3) Our next Data Showcase event will be held in Hong Kong this September. Vendors who want exposure to the APAC region should contact our Data Team – dataenquiries@eaglealpha.com

4) Every month we host 1-on-1 meetings between asset managers and data vendors around the world. Contact enquiries@eaglealpha.com to learn more and schedule a roadshow with us.

Since 2012 Eagle Alpha has enabled asset managers to obtain alpha from alternative data – contact us to discuss your needs.