Unlocking Alpha with Alternative Data

In the last decade, the world witnessed dramatic changes in technology and considerable pressure from global regulatory bodies. This, coupled with a highly competitive global landscape and pressure on margins, has led firms to focus on exploring new avenues of alpha generation or product differentiation.

Global internet traffic has surged 15 times in the last 10 years. Today, 5% of that traffic is generated by hedge funds collecting data. While 55% of global asset managers embrace alternative data, less than 1% of the total data collected is analyzed.

So, in an era where data is growing at an explosive rate and hundreds of players claim to have an edge over each other, is it possible to truly differentiate? As an investment manager or a covering analyst, is it possible to derive unique insights from alternative data? Let’s find out.

Key Takeaways

• The rise of alternative data powered by technology megatrends
• Framework to generate unique investment insights
• Common challenges and the way forward
• Key success stories across sell-side and buy-side

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