Alternative Data Newsletter #120 – May 31st, 2019

Key Highlights

  • Partnership With Lowenstein Sandler: today we launched a new partnership with Lowenstein Sandler to meet the legal and compliance challenges associated with the on-boarding and use of alternative data. The partnership is pivotal to addressing the issues encountered in the ever-evolving alternative data space. 
  • Ticker Signals Backtesting: using Eagle Alpha’s proprietary dataset Ticker Signals, we were able to create a trading strategy that outperformed the benchmark by 28% over a 5-year period. Ticker Signals is a dataset that uses online search data at a ticker level for the largest 1000 companies in the U.S. and can be used as an indicator for buying and selling stocks. To discuss our backtesting results in more detail or if you would like more information on this dataset please email enquiries@eaglealpha.com.
  • Web Crawling Best Practices: Investment Data Standards Organization (IDSO), a non-profit industry-driven organization, released a document outlining best practices when performing web crawling projects. The report focuses specifically on the web crawling practices of the buyside and outlines risk identification, categorization, and minimization of online data collection practices. The complete report can be found at www.investmentdata.org.

Prioritization

  • Datasets Getting Traction:
    • Quant: this vendor tracks thousands of websites capturing and indexing vast amounts of public data and presents it in an intuitive, proprietary platform. The vendor’s customizable library of company specific time series data includes 400,000+ public and private companies globally across all sectors and market capitalizations. These time series are updated daily allowing for timely tracking of business operations on a granular level which is predictive of company performance. Our Data Sourcing clients can view the full profile here.
    • Discretionary: this vendor leverages a new age of connectivity. From cars driving off the lot, early adoption of the latest wearable or smart products to newly launched businesses turning on their Wi-Fi networks – the vendor’s proprietary platform captures and makes sense of the connected landscape. Our Data Sourcing clients can view the full profile here.
    • New Dataset: this vendor leverages AI and NLP to sift through billions of documents, PR sites, news sites, blogs, case studies, hiring trends, technology installs, industry reports etc. End result is intelligence on over 20 million companies provided via API. Our Data Sourcing clients can view the full profile here.

Finding Alpha

  • Research Analysts Thoughts: this week the ANF and WDAY results caught our attention. We have been monitoring improving discounting trends in the US for ANF but were blindsided by weakness in international markets. For WDAY, the weakening demand we’ve been seeing didn’t materialize in the current quarter. For software companies we frequently see a lag in demand trends being reflected in reported revenues so we will be monitoring this name closely. Reach out if you would like to discuss any of our analysis in more detail – enquiries@eaglealpha.com.
  • Our Next Alpha Workshop: June 20th at 9 am ET. Email enquiries@eaglealpha.com for more details.

Events You Should Attend

  • Eagle Alpha’s Alternative Data Conferences:
  • Data Strategy Webinars:
  • Upcoming Roadshows:
    • Audit data provider meeting funds in Chicago on June 4th, in Connecticut on June 5th, in NYC on June 6th and in San Francisco on June 7th.

Notable News in the Alternative Data Space