Supporting investment decisions with alternative data

Room 3 | 2:00 pm - 2:30 pm | Wednesday, February 22, 2023

Over the last decade, the use of alternative data by hedge fund managers and other investment firms has grown significantly. Alternative data is non-traditional data that is collected and used to gain insights into markets and asset prices. It has come to be seen as a valuable source of information that can provide an edge over competitors and can be used to make more informed investment decisions.

Examples of alternative data include satellite imagery, web scraping and social media data. The use of this data has grown as financial technology (fintech) has improved and made it easier to collect and process. Additionally, investment firms are increasingly leveraging machine learning and artificial intelligence to glean insights from alternative data.

The use of alternative data has historically been used to augment primary marketing research, but over the last few years has taken on a significant role in the investment decision-making process.

OvationMR and Lowenstein Sandler, a national law firm, examine the use of alternative data among investment firms’ business decisions and analyze how the market is changing. Is there still a place for primary marketing research or will this go by the wayside as the amount and types of alternative data continue to grow?

Methodology:

OvationMR conducts primary research among hedge funds, private equity firms and venture capital groups to determine how the use of alternative data is changing. An online survey has been executed with fresh results to be presented at Quirk’s Event – Los Angeles in February 2023.

Key takeaways:

1. How the use of alternative data is changing over time.
2. Identification of the most commonly used types and sources of alternative data.
3. How the pandemic impacted the use of alternative data.
4. Identifying the hurdles associated with using alternative data in market research.

Case Study Financial Services Joint Presentation