KEY tools for HF Analysts (l/s, event, long only)
I've been a long time user of WSO and it helped me a lot earlier in my career so wanted to do this post. I spent my career in different roles across s&T and banking and most recently a junior PM at a multi manager (think Citadel, Millennium, P72). Over the course of the past 2 years, I've found that the workflow of how people operate on the HF side and do research has completely evolved. The analysts that do best are the ones who are able to find where expectations are off on the long or short side and capture alpha around events. That being side, there are a handful of tools that we've been using that can help anyone to stand out. Some of them are now more common today, but knowing about them can set you apart and give you an edge.
Tegus: There's been a long history of tiger funds and single managers doing copious amounts of expert calls with former execs deep in the industry. Tegus is a library of 1000s of expert calls that analysts have done to get insights on a company or industry. Helpful if you're looking for an angle that might not be in sell side. https://www.tegus.com
Earnest Analytics: Like a better version of MScience but very focused on consumer companies. Hedge funds often find evidence for shorts on this from cohort retention metrics that could show elevated churn rates or drop off in trends. https://www.earnestanalytics.com
Variant: This one is new but has been circulating the HF circles. Allows you to see what traders and analysts are thinking about events and buyside consensus data. Has a lot of the TMT names. https://www.variantmkt.com
Koyfin: A good alternative to capital iq or Bloomberg light edition basically if you're someone that would benefit from having market data. https://www.koyfin.com
Some others: Bamsec, Yipit / MScience (more known),
If anything else out there you guys use, please let us know.
Thanks for the insight!
No problem. Hopefully it helps other aspiring hf analysts !!!
Based on the most helpful WSO content, here are some key tools for hedge fund analysts (L/S, event-driven, long-only) that can help you stand out and capture alpha:
Tegus: A library of thousands of expert calls with former executives and industry insiders. Great for uncovering unique insights not found in sell-side research.
Earnest Analytics: Focused on consumer companies, it provides cohort retention metrics and other data to identify trends like elevated churn rates, often used for short ideas.
Variant: A newer tool gaining traction in HF circles. It offers insights into buyside consensus data and what traders/analysts are thinking about specific events, especially in TMT sectors.
Koyfin: A lighter alternative to Capital IQ or Bloomberg, providing market data and analytics for those who need a cost-effective solution.
Other Notables:
These tools are increasingly becoming staples for hedge fund analysts aiming to refine their research process and gain an edge in the competitive landscape.
Sources: Q&A: London L/S + event-driven analyst, Good time for a new analyst to join L/S hedge fund?, Q&A: London L/S + event-driven analyst, Q&A: HF Analyst @ $5bn+ Fund - Breaking In and Transition to Risk-Taking Role, Reflections from year 4 as an equity analyst
Legend
What exactly is Variant? The website is pretty unclear, how do they aggregate data?
I'm not an expert on it but it's def one of the new ones that has been getting use by HF analysts. I'm a member though and it has a lot of discussion on upcoming events and has been helpful. Another one I forgot to mention is Alpha Sense, not sure if anyone is familiar with it. Def starting to see more ai tools in use.
Got it, so it’s more discussion than data on price implied expectations? I love AlphaSense, their AI search engine works very well with all public filings, earnings calls, conference and some expert call transcripts. Good text-to-speech function like BBG for absorbing info while multitasking
I am curious if there is any chance that students can get access to these?
I have seen quite a few sophomores/juniors use Tegus as a part of their pitches in stock pitch competition but never been able to figure out how they managed to get access to it in the first place.
Do they get it through student clubs? because based on what I know, most unis don't offer Tegus as a library resource.
Good unis do offer Tegus to students lol
Yea even Bloomberg can get through most undergrad b schools. Tegus has student trials. Variant is open to students, Visible Alpha I think is a part of S&P which definitely has student access or trials. Most of these things can boost interview chances tbh. When I interview an analyst that has spent time sifting through third party sources I always respect that.
Ngl this is table stakes for many top pitches among undergrads now. Ik a lot of kids who run full independently sourced channel checks.
Can anyone describe the ball park subscription costs for these databases. Trying to benchmark desk costs for a single user apart from Salary, rent and ops.
Bloomberg: $30k Alphasense: $15k Earnest Analytics: $60k Yipit? M-Science? Gartner? ETR? GFK? Similarweb/ Appannie? Variant? Any other?
What BBG discount code is that?
Isn’t the delayed pricing one priced at ~$30k?
op obv works at variant - it is not a "key tool" lmao.
Could be onto something
Mess with the best, die like the rest
Aliquid sunt soluta vel velit amet. Nesciunt reprehenderit doloribus dolorem nisi laudantium illum optio. Et harum id asperiores illum. Iste enim quis omnis omnis aut praesentium doloremque. Sed animi illo corporis optio et culpa suscipit.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...