What kinds of data do hedge funds have access to?
I'm curious on what sources of data fund managers usually consider when forming investment theses.
I'm aware that there is a plethora of different strategies for different firms, but I'm curious to see whether different firms actually have information advantages over the others.
Would love to hear everyone's thoughts on this, would be extremely helpful!
Well let's see...I'm guessing you're talking about the alt datasets. The ones basically everyone has are
Lot of players involved in energy data too, which is a super big space. Other sectors have basically nothing. Then there's third party research firms who specialize in web scrape data...players like Mscience, YipitData, Edgewater. They give reports and predict the quarter for clients using their proprietary data.
To your second question - there was a time when having this data gave an information advantage over the other hedge funds. Not anymore though :)
false. Just need to do more nuanced work. and sometimes just need to look.
eh...what I mean is the data does not intrinsically give you an advantage anymore. back in the day you could just trade whatever consumer edge said was going to beat a week after the quarter ended, because few people had it. that was an information advantage.
the data can be a source of alpha sure, it's just shifted to a commodity utility that requires more effort each year to mine. I consider that an engineering advantage. maybe you consider it semantics
Nah I totally agree with you there - just pulling up the web GUI and seeing what XYZ 3rd party sent out for their quartelry implied sales just tells you what the whisper number is
Use it creatively and self-source uncrowded data
There is immense alpha from alt data all over the place
There is no alpha in using commoditized data in the same manner as everyone else
just like there is no alpha doing the same expert calls as everyone else
You listed tech/consumer/hc/energy so are you saying sectors with undeveloped data collections are industrials/media/telecom/real estate?
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