The Rise of Alternative Data in Investment Management
The Rise of Alternative Data in Investment Management
Introduction
Alternative data is becoming a crucial asset for investment managers. It offers insights into markets and trends, allowing them to make informed decisions. But what exactly is alternative data, and how is it shaping the world of investments?
What Is Alternative Data?
Alternative data refers to information gathered from non-traditional sources, such as social media, web scraping, or transaction records. These raw data sets can be refined and analyzed to reveal patterns and insights into market behavior.
The Importance in Investment Management
Every investment manager is looking to gain a competitive edge. Alternative data allows them to gain insights that traditional data may not offer. However, the raw nature of this data requires considerable work in cleaning, fixing quality issues, and processing.
The Future of Alternative Data
The alternative data market is still in its infancy but growing rapidly. Companies like Onclusive and AltHub are creating scalable technologies to extract and aggregate this data, making it easier for investors to analyze and use. The future looks promising for this evolving market.