Important Developments In Altdata For The Buyside

  • Broker Votes: 80% of buyside firms expect other firms to follow Blackrock’s lead and introduce a new row for “data” in their broker votes. Source: Eagle Alpha survey at our recent London conference.
  • 2019 Budgets: 25% of buyside firms are planning to spend >$2m on alternative datasets in 2019. Source: Eagle Alpha survey at our recent London conference.
  • 2019 Categories: the top 3 categories in demand for 2019 are: 1) employment; 2) ESG; and 3) pricing. Source: Eagle Alpha survey at our recent London conference.
  • Alpha Left?: we asked buyside firms if they thought there is any alpha left in alternative data. 100% said yes. If there is alpha left in traditional data then of course there is alpha left in non-traditional / alternative data! Especially given there will be >5,000 alternative datasets by the end of 2020.
  • Mapping: the mapping problem continues to surface amongst our buyside and vendor clients. We have schedule a breakout session to discuss this at our conference in NYC on November 29th.

Events You Should Attend

  • NYC Conference: our next “access and alpha” conference will be held in NYC on November 29th. The event is complimentary for buyside firms. To register contact events@eaglealpha.com.
  • C-Suite Webinar: we are organizing a webinar in mid November that is entitled “Getting your organization ready for the data deluge – a webinar for senior management of buyside firms”. To learn more contact events@eaglealpha.com.
  • Luxury Goods webinar: in November, Eagle Alpha will bring a number of data vendors together for a webinar on how alternative data can help analyse luxury goods companies and trends in the wider luxury goods sector. For more information contact events@eaglealpha.com.
  • Industry Group: our next Data Forum event will be held on November 1st (online). Topics include: standardized DDQs and metadata, and insights from two law firms. For more information contact: dataforum@eaglealpha.com.
  • 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. For more information contact mark.vaughan@eaglealpha.com.

What Datasets Are Getting Traction?

  • Dataset in demand (quants): this vendor combines fundamental analysis, quantitative metrics, and alternative data. Using proprietary artificial intelligence and deep-learning algorithms which constantly filter, rank, and sort vast amount of data in order to adapt to changing market conditions – the vendor delivers a dataset that provides daily predictions on Russell 5000 equities over 3, 6, and 12 month time horizons. Along with fundamental metrics, they also use sentiment data for refining the outputs.
  • Dataset in demand (discretionary): this vendor provides access to new, used and certified cars inventory for all car dealers in USA and Canada. Data comes directly from dealer websites. The vendor also provides a bespoke crawling service.
  • New alternative dataset: this company gathers, analyzes and curates human capital data from online professional profiles and job postings to create insights for thousands of companies, public and private.

Data Science Lab

  • Open Sourcing This Week: PyTi – this python library contains a large list of common financial technical indicators you can apply to your data, including many flavours of moving averages, price channels, and Bollinger bands.
  • What We’re Reading This WeekPixieDebugger, The Visual Python Debugger for Jupyter Notebooks You’ve Always Wanted. This article walks through how to setup and use the visual debugger PixieDebugger in the Jupyter notebook environment. It turns notebooks into a much more fully-fledged interactive development environment complete with breakpoints, an execution console, variable inspection, and post-mortem analysis.

Legal & Compliance Developments

  • Interview: watch an interview with Peter Greene of Lowenstein Sandler give this thoughts regarding legal & compliance. Link.
  • Standardized DDQ:  a working group is standardizing DDQs. The group consists of 15 buyside firms, 6 alternative data vendors and law firms Lowenstein Sandler and Simmons & Simmons. To join the working group contact dataforum@eaglealpha.com.
  • Standardized Trial Agreement: in early September we published the first standardized trial agreement for the alternative data space. To obtain a copy contact dataforum@eaglealpha.com.

Efficiency Improvements

  • Standardized Metadata: the output of this working group will be finalized in a few weeks time. To learn more contact dataforum@eaglealpha.com.
  • 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

  • Altdata.tv: this week we added interviews from our recent trip to Hong Kong. For example, Vinesh Sha provides interesting comments regarding the usability of alternative datasets. Link.
  • Eagle Edge: This week clients of Eagle Alpha’s Data Analytics solution were activated for Eagle Edge, the first alternative data platform designed specifically with fundamental analysts in mind. Please contact enquiries@eaglealpha.com to learn more.

Updates For Alternative Data Vendors

  • Funding: if your firm is seeking to raise capital contact us – we can help. Email: enquiries@eaglealpha.com.
  • 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.
  • 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. To learn more contact data@eaglealpha.com.
  • Dashboards: to help you access traditional fundamental investors we are building customized dashboards on top of alternative datasets. Contact us to learn more at enquiries@eaglealpha.com.

Notable News in the Alternative Data Space