Important Developments In Altdata For The Buyside

  • Spending on Alternative Data to Increase: Aite group expects capital markets spending on alternative data technology to increase to US$ 901 million by 2021.
  • Credit and Alternative Data: our event in London featured multi-strategy and credit focused attendees. Their interest in alt data is increasing due to the ability of alt data to be used in asset and company due diligence. Dean Barr, head of Bespoke Projects, discussed private equity and credit use cases at our event on Friday 12th October. Contact us to obtain a copy of this deck.
  • Alternative Data in Europe: adoption of alternative data continues to increase. London is now playing catch up with New York with a number of UK institutions and London based hedge funds making key hires to help accelerate firm’s ability to work with data. This is reflected in interest in our events, European data vendors and attendance at our London event by pan European focused strategies. Eagle Alpha continues to engage and introduce European focused data vendors onto our Data Sourcing platform.

Events You Should Attend

  • Events: our next “access and alpha” event will be held in NYC on November 29th. Register your interest: events@eaglealpha.com.
  • Meetings: our next Data Forum event will be held on November 1st (online). We will discuss data due diligence questionnaires and the standardized metadata schema. This is for Data Forum clients only.
  • Roadshows: a data vendor is meeting funds in London on November 7th & 8th. This data vendor provides alternative data on Chinese companies listed worldwide and Chinese consumer and market trends. They are experts in web-based multi-modal data, which is analyzed using their proprietary AI systems. Contact mark.vaughan@eaglealpha.com for more details.

What Datasets Are Getting Traction?

  • Dataset in demand (quants): this data vendor provides an accurate view of the impact and efficiency of an enterprise’s investment in innovation. The vendor evaluates all worldwide patents using its scientifically developed methodology.
  • Dataset in demand (discretionary): a text analytics company that delivers categorized and detailed corporate events which are extracted from earning call transcripts and assigned with a sentiment flag.
  • New alternative dataset: a content analytics provider that indexes a subset of the web’s content, specifically focused on text news articles.
  • Winners of Eagle Alpha’s award announced at our London event:
    1. This vendor offers a rich and unique view of the global labor force at a company and industry level.
    2. This vendor uses its proprietary algorithms to blend data from 65 global data vendors to extract high quality signals. Sources include GPS, Wi-Fi, beacons, transaction data and telecom companies.
    3. Mobile app download and review data provider. Covers iTunes, Google Play Store and Amazon.

Data Science Lab

  • Open sourcing this week: Apache Superset is a web-based business intelligence and dashboard application built by AirBnB and features many built-in visualization types and an easy to use interface for hooking up to your data sources.
  • What we are reading this week: LiveRamp’s Engineering Blog. This blog produced by the engineering team at LiveRamp (an identity-linking company focused on the digital marketing vertical) showcases work done at this big data company. Topics have included using machine learning to auto-detect information contained each column of a dataset and methods for analyzing terabyte-level edge graphs efficiently.

Legal & Compliance Developments

  • Standardized DDQ: our next working group will work on the standardization of DDQs. It will involve buyside firms, alternative data vendors and law firms Lowenstein Sandler and Simmons & Simmons. Contact us to join the working group.
  • Standardized Trial Agreement: in early September we published the first standardized trial agreement for the alternative data space. It involved comments from 12 buyside firms and 4 vendors of alternative data. Get in touch to obtain a copy.

How Experienced Firms Are Making Efficiency Improvements

  • Standardized Metadata: we have formed a working group to standardize the metadata that describes alternative datasets. Contact us to join the working group.
  • Sharing Groundtruth Data: two clients asked us to create an initial working group to explore the concept of sharing esoteric groundtruth data that is not available from traditional sources.

Updates To Our Solutions

  • Data Forum: following feedback from clients we redesigned the Data Forum product offering along four components (legal & compliance, efficiency improvements, best practices and industry developments).
  • Eagle Edge: our platform enables fundamental analysts to work with alternative data without the need for additional data engineering and data science. Contact us for a demo of Eagle Edge.

Updates For Alternative Data Vendors

  • Altdata.tv: to gain unique marketing exposure contact us to schedule an interview. Email: connect@altdata.tv.
  • DDQs: we have started a working group to standardize dataset due diligence questionnaires. If your firm would like to participate email dataforum@eaglealpha.com.
  • Events: our events are exclusively for the buyside and vendors. And we don’t charge vendors anything up-front so we have skin in the game. For each event we invite 25 vendors to present (elevator pitch, exhibit and 1-on-1s) to the buyside. Our NYC event is full but we will host 5 events next year – contact us to learn more.
  • Trial agreement: we worked with buyside firms and vendors to produce a standardized trial agreement. Vendors can obtain this for free if they have a full profile (including sample data) on our database.
  • Dashboards: to help you access traditional fundamental investors we are building customized dashboards on top of alternative datasets. Contact us to learn more.

Notable News in the Alternative Data Space

Contact us – enquiries@eaglealpha.com.