Eagle Alpha enables owners of “alternative data” to monetize their data in the asset management vertical.

The Opportunity

  • Asset managers are becoming increasingly hungry for new alternative data sources that can give them an edge.
  • Spend by asset managers on alternative data is already at $200m according to research by TABB Group. This amount is set to double in the next few years.
  • Blackrock’s Scientific Active Equities Group stated, in a note entitled “The Evolution of Active Investing”, that the role of big data (or alternative data as we prefer to call it) is “underappreciated in the sense that its rise represents a watershed moment in the history of investment management…we believe that in order to generate sustained alpha, investors should embrace acquiring, analyzing and understanding the fast growing universe of data. Those who are unable to do so run the risk of falling behind in a rapidly changing investment landscape”.
  • This view is supported by Goldman Sachs Asset Management in a note entitled “The Data Revolution: From Volume to Value”. It stated “we believe the Data Revolution is here to stay and that investors should recognise its potential to reshape the economic landscape. We believe the changes wrought by the Data Revolution will continue to apply across multiple industries – separating winners from losers, based on those who can best use data as an advantage – including in the world of investment management”.
  • Eighty percent of asset managers want greater access to alternative data sources to help generate investment alpha. This statistic is based on a Greenwich Associates survey between October and November 2016. Greenwich Associates interviewed 69 US and European based chief investment officers, portfolio managers, traders and investment management firms with between $100 million and $1 trillion assets under management.

The Benefits

  • Create an additional revenue stream by selling to money managers. Note: don’t sell data to the sellside (investment banks) or this revenue stream will be canabalised. 
  • Eagle Alpha can evaluate your data and provide feedback on its applications and marketability.
  • Eagle Alpha will prepare investor relevant marketing materials including examples of use cases.
  • Eagle Alpha will raise awareness about your data through articles, interviews, research reports and presentations to potential customers.
  • Eagle Alpha’s dedicated salesforce will ensure that your data is well represented.
  • Additional revenue drops straight to your bottom line.

Why Eagle Alpha?

  • Recognised leader in our space. For example, in March 2017 Citi published a detailed paper on the alternative data space. Citi approached Eagle Alpha to contribute to this paper. Contact us to receive a copy of the report.
  • Team experience. Our team, led by a former Morgan Stanley banker, has significant experience on the sellside (investment banks) and buyside (asset managers). Our team is advised by a strong Advisory Panel and group of shareholders that have experience on Wall Street. Having a deep understanding of asset managers is critical to bringing a dataset to market.
  • Preparation process. We regularly survey asset managers about how to help make the buying process better. It is critical to ensure a dataset is thoroughly prepared to go to market. This can involve detailed profiling, a legal and compliance review, quantitative testing, preparation of commercial documentation.
  • Comprehensive product for asset managers. The 6 parts of our product can all be utilised to help monetize a dataset:
    1. Teach-ins. Eagle Alpha is the only provider of teach-ins regarding alternative data. These teach-ins can showcase the datasets of our partners.
    2. Bespoke Projects. We conduct bespoke projects for clients. These can be a good way to demonstrate ROI of a dataset.
    3. Thought Leadership. Eagle Alpha is the only provider of thought leadership content regarding alternative data for asset managers. We regularly publish white papers and case studies based on partner datasets.
    4. Data Insights. Our research analysts publish research reports and indicators based on partner datasets.
    5. Analytical Tools. Eagle Alpha offers a range of unique analytical tools that enable clients to do proprietary analysis. On a selective basis Eagle Alpha will consider building tools based on a partner’s dataset.
    6. Data Sourcing. Eagle Alpha has the largest database of alternative datasets worldwide.
  • What is Data Insights and what are the benefits for my firm? 
    • What is Data Insights?
      • Eagle Alpha publishes Data Insight research reports and predictive indicators for a select number of data partners.
      • Please note that the aim of the research reports and predictive indicators is to act as marketing collateral in order to sell a partners dataset. The aim is NOT to cannibalise sales of the underlying dataset – that is obviously not in your interest or ours. We both want to make as much money as possible.
      • Therefore Eagle Alpha only wants to publish on a very small percentage of a dataset. For example, if your dataset covers 200 tickers we would want to be able to publish on 10 tickers. The ‘cap’ on the number of tickers or topics is agreed up-front with our data partners. This avoids any ambiguity.
      • Our data partners can approve any reports and indicators that include their dataset.
    • What are the benefits for my firm?
      • Unrivalled marketing collateral that Eagle Alpha is uniquely positioned to produce.
      • These type of reports are required in order to target a significant proportion of discretionary hedge funds and mutual funds.
      • Eagle Alpha’s research reports are published on a variety of research platforms: Eagle Alpha, Bloomberg, Factset and Reuters. This is a great way to source leads for your dataset.
      • Regular publishing on your dataset keeps the case studies / examples current and relevant to the market.
      • Regular testing of the data as a continuous quality control endorsement to asset managers.
  • Unrivalled distribution. Since 2012 we have built a very strong distribution network:
    • Network: Since 2012 we have been building relationships with the innovative asset managers that have started to work with alternative data. These asset managers are split across three types: quantitative funds, discretionary hedge funds and mutual funds.
    • Clients: Eagle Alpha has clients right across the world. Cities include: Los Angeles, San Francisco, Chicago, Boston, Connecticut, New York, London, Singapore and Hong Kong.
    • Direct Salesforce: Our sales and marketing efforts are led by our CEO. He is joined by a team of five individuals that can help a data partner source leads.
    • Showcase Events: Eagle Alpha invented the “Data showcase” event format. Each quarter we invite 6 data companies to pitch to 150 buyside firms in New York and London. Our event partner is Credit Suisse. 
    • Sellside Reports: Our relationships with investment banks can give data partners incredible reach. For example, the Citi report profiled a few of our data partners – the report was sent to several thousand firms worldwide. We have been approached by other banks that are doing similar reports and want to profile more of our partner datasets.

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