Alternative Data Newsletter #143 – November 7th, 2019

Key Highlights

  • Keynote Speaker Announced: we are excited to announce Elizabeth Pritchard as our Keynote Speaker at our annual Alternative Data Conference in London next week, 15th November. Elizabeth is the Founder of White Rock Data Solutions LLC. Elizabeth has held senior leadership roles with Goldman Sachs, AIG and Crux Informatics. She is a recently appointed Eagle Alpha board member. Don’t miss the opportunity to hear from Elizabeth the morning of the 15th November at the Simmons & Simmons office, Citypoint.
  • Eagle Alpha Conference in London: complimentary tickets available for data buyers to attend our London conference on November 15th. See the full agenda and register here. Key features:
    • 10 data quality test results on vendors – an interactive Jupyter notebook session.
    • 20 forward-looking use cases and trade prediction ideas by vendors to assist with prioritization.
    • 6 roundtable sessions for buyers to discuss the topics that matter e.g. mapping.
    • 15 meetings between data buyers and vendors that can be pre-scheduled.
  • Research Analyst Thoughts: an Eagle Alpha report published on November 6th highlighted that ASP trends across all three categories monitored on the Lululemon dashboard are positive indicators for sales growth and margin trends. Management strategy of adding products is evident in higher SKU count in the What’s New category and this should be a tailwind to growth again this quarter. The one cautionary note is an elevation in SKU in the We’ve Made Too Much Category.
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Quality Screening

We performed a quality test of a data vendor who collects, structures and reveals events from news articles, press releases and financial social media. We performed NLP on the article title to extract the most common bigrams for a number of categorical variables, including for companies, topic categories and sentiment classifications. Some interesting findings include frequent appearance of names of prominent investor advocacy-focused law firms in article titles classified under “ESG”.

Prioritization

We now have over 100 trade ideas submitted to our Alpha Capture product. This is the world’s first tool to help buyside firms identify and prioritize alternative datasets that deliver actionable, alpha-generating data. With Alpha Capture, data vendors submit trade ideas or forward-looking use cases based on interesting insights from their datasets, which gives fund managers the first-ever opportunity to value alternative datasets and ascertain, at scale, the real potential for alpha. 

Discovery

This vendor tracks agricultural commodities globally. Coverage includes grain, oil and feed commodities, soybean, cottonseed products etc. The vendor captures prices, production, sales, stocks, capacity utilization, purchases, imports & exports, import margins, processing margins, and price spread, etc. of agricultural products. Our Data Sourcing clients can view the full profile here.

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Dashboards

The Sales Signal dashboard for Dicks Sporting Goods (DKS), hosted on Eagle Edge, shows an inflection to the upside again this quarter. The indicator, based on DKS specific terms from Google Trends, has generally tracked revenue metrics closely. Over the last 16 quarters the signal preempted QoQ SSS direction 81% of the time over a three-quarter period. Momentum in the index in the July quarter led stronger than expected SSS.

Research Analyst Thoughts

An Eagle Alpha report published on November 6thASP trends across all three categories monitored on the Lululemon dashboard are positive indicators for sales growth and margin trends. Management strategy of adding products is evident in higher SKU count in the What’s New category and this should be a tailwind to growth again this quarter. The one cautionary note is an elevation in SKU in the We’ve Made Too Much Category. This could be an indication of slowing consumer acceptance across the product range. The elevation in SKU in the sales category is particularly notable for women and this may put some pressure on future sales or margins.

 

Legal & Compliance

On October 29, 2019, Australian regulators sued Google for misleading consumers regarding the collection of location data. It’s the latest example of government action against a big tech firm over the collection of user data.

On our November legal webinar, Lowenstein Sandler will discuss legal considerations surrounding app tracking and email receipts data. Details:

  • Date: 18th November 2019
  • Time: 9.30am EDT
  • Contact us at enquiries@eaglealpha.com to learn more!
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Upcoming Webinars

Alpha Workshops

  • November 21st: Geo-Location Data.
  • December 19th: Pricing Data.

Legal Webinars

  • November 18th: App Tracking & Email Receipt (Apple and Google’s changing T&C’s).
  • December 13th: China Data.

Upcoming Conferences

Eagle Alpha’s Alternative Data Conferences:

Upcoming Roadshows

Eagle Alpha’s Alternative Data Conferences:

  • App data provider is in London on November 13th & 14th.
  • Patent data provider is in London on November 13th & 14th.
  • Audit data provider is in London on November 14th.
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