How Alternative Data Is Giving Funds Greater Insight

Dubbed the ‘secret sauce’ for investment teams, alt data is helping funds find trends that humans can’t easily spot.

…Predata gathers metadata in websites, such as the statistical metrics on visits and interaction with websites, to form predictive analysis. This information can be a proxy of predictive behavior and can be a leading indicator to themes and topics important to markets that may enhance risk management or add to returns.

This data can be an additional input to either help confirm or falsify conviction. If you’re a fundamental discretionary manager, or if you’re more of a systematic quantitative manager, think of us as an additional feature within a multifactor model…