Alternative Data News & Insights
AltHub Announces An Exciting New Business Venture
Wealth-X Digital leverages sophisticated targeting technology, paired with the Wealth-X global database of very high net worth (VHNW) and ultra high net worth (UHNW) records, to reach the wealthy individuals most likely to respond to digital advertising.
“Conveying the appropriate message to a targeted audience is the primary challenge for organizations seeking to advertise to wealthy individuals,” said Scott Hall, Managing Director at Wealth-X. “The advantage is in our pure data-set of UHNW and VHNW individuals. Our clients can focus on creating highly-tailored campaigns with the confidence that they will reach the right audience at the right time to make an impact.”
The insights into the rich provide investors an understanding of buying and spending habits. With an emphasis on a pure audience, analysts are able to identify the individual to form better relationships with clients. Wealth-X Digital assists investors in diversifying their client's portfolios while delivering purpose for each investment.
Evaluate Deeper Insights In Half The Time
Nothing is more cutting edge than applying Natural Language Processing (NLP) to boost research operational effectiveness. AltHub is pleased to announce a new customer, Quantxt, that has achieved an early track record in this field and is offering financial firms a chance to pilot the technology
The head of NYC based Quantxt, Matin Kamali, has already shown in several projects how NLP can help research analysts better process a wide range of information.
"We can extract data from all major digital formats such as HTML, PDF, Excel, MS Office or any other text format,” Kamali says. “You can even run analysis on real-time data streams such as chat data, emails, filings, and newsfeeds.”
According to Kamali, up until now, the key challenge for processing information has been with searching and extracting content like financial statements, research reports, emails, and news.
What's New With AltHub?
Founder, Scott Hall, says the number of new providers identified and profiled by the AltHub service alone has skyrocketed to over 400 and quite a few are new vendors to the financial space. Hall says interest from buy-side firms has also accelerated with over a 100 firms regularly consulting with AltHub and using the Profiler Platform to find new data sources.
“Investment managers are hungry for an informational edge to gain alpha. They are also seeking early warning signals in this increasingly jittery market,” Hall said. In addition to helping providers, AltHub assists investment firms with data scouting and with research services for hard to find data. AltHub also helps with preliminary data testing and to build technology components to help investment firms gain the most strategic advantages from newly available Alt Data.
AltHub Welcomes New Vendor-- Mercaris
Based in Chicago, IL Mercaris has been creating and analyzing agricultural data on emerging, high growth ‘Identity-Preserved’ Ag commodities like organic and non-GMO grains since 2012.
AltHub Founder and President Scott Hall says, “Mercaris is the only firm providing transparency and analysis into actual transactions involving the emerging non-GMO and organic sectors.” He says this data should be of particular interest to private equity firms which have aggressively invested in farmland during the last few years. Or, firms investing in food/Ag companies with holdings in IP production or ingredients.
Mercaris Founder and CEO Kellee James says, “From prices to acreage, grain processing, and demand analysis it’s important to understand the high growth opportunities in the food supply chain. Mercaris supports cutting-edge research and due diligence - all of which gives our customers an edge.”
Making Sure Your Alternative Data is “Street Legal”
The Economist magazine reported that “Hedge funds worry about the legal risks of using “alternative” data. AltHub Data Scientist Richard Lai says the top three things that need to be checked are:
1. Ensuring that data does not violate inside information (MNPI) and privacy (PII) regulations.
2. Legality of obtaining data, particularly with recent changes in the law such as GDPR.
3. Does the company actually have rights to sell the data?
AltHub Welcomes New Vendor-- DataYes
You need more than a strong stomach to invest in China these days as President Donald Trump threatens tariffs and China threatens to hit back.
With a lot on the line, investors are turning to DataYes, a China-based company with the best quality financial data and information regarding the Chinese markets, for support of their data-driven investment research and strategies. The data service is currently used by over 1,500 institutional clients globally.
As you may know, reliable data is hard to access in China. And DataYes provides comprehensive macro/sector data, high-quality point-in-time fundamental data, equity factor data and risk model data with recognitions from its clients. It also offers a broad range of alternative data, from Chinese local news sentiment to hiring data.
The data trial can start right away with FTP or API access. And as an innovative and nimble company, DataYes can also accommodate bespoke projects to meet your unique needs.
Alternative Data is Transforming Investment Processes
Alternative data has the ability to transform the investment process. With the amount of data that is already on the market, machine learning and cognitive computing solutions are needed to make sense of complex datasets. While early adopters were only quantitative hedge funds, a push for the fundamental use of alternative data has made great strides.
We asked our data scientist, Zain Hoda, two key questions for investors revolving around the alternative data industry.
1. What are key features needed in a high-quality alternative dataset?
2. How will fundamental investment firms use alternative data in the future?
AI Social Media Insights Drive Investment
Investors continue to suspect they will find reasons to buy or sell based on social media data from services like Twitter and Facebook. Determining whether there are profitable signals buried in social media is a daunting task, but New York-based Unmetric makes it possible. The service tracks consumer reaction and sentiment around thousands of brands mapped to stock tickers with data going back as far as 2012 to enable back testing of the data.
Unmetric CEO and Co-Founder Lux Narayan says that "Markets are fundamentally conversations, and so the volume and sentiment of comments and queries directed at brands is a good leading indicator of these conversations. The advantage is that we filter out the noise and follow how people react to social brands."
Unmetric Head of Finance, Tina Lakshmanan, says the first started to help brands track their competition, content, and campaigns and that “the world we live in now requires real-time data to indicate how brands connect with their customers.”
Insights From Our Founder, Scott Hall
Several interesting updates from the past few weeks. One is the SEC struggles to simultaneously protect consumers while enabling crypto innovation. Its chairman has appointed an SEC employee to a new job with an attempt to oversee this balancing act. I was in Iceland this past week and it was amazing to see the large data centers that are expanding to support Crypto and blockchain applications. Google also just announced a large center investment. Iceland’s low energy costs and location are a natural for US and European markets. Even at the coffee shops, the chatter on Crypto topics was noticeable. These crypto Vikings will for sure make more noise into the near future.
Battlefin and Jefferies are partnering in a more formal way. Battlefin’s testing tool and Jefferies wide customer base give this partnership the ability to leverage alternative data research. We are likely to see other investment banks extend their alternative data labs into partnerships with outside players. The horsepower and experience of sell-side firms are a natural combination with the open new alternative data marketplaces/advisory firms.
Blockchain Evolving to Boost Supply Chain Management
Benefits of the technology are quick to be seen in supply chain management in major companies like Cisco and IBM. The excitement towards this adoption is becoming more prevalent. While financial institutions are still hesitant, research regarding Blockchain will not be abandon because of its potential to transform the industry. Startup firms like Brave New Coin (BNC) have become major players in the crypto industry, striving to provide data focused on Blockchain and digital assets.
AI News Software Powers Analysts
Imagine you have ten analysts working for you. Every day they spend two hours just searching for information, looking at the SEC filings, news, blogs and even Twitter.
You start thinking 2 hours daily X hourly wages X 10 analysts -- that’s a significant amount of money. It would be nice to automatically find and deliver the valuable information to the analysts without them having to search for it.
That’s the opportunity attacked by Accern’s new artificial intelligence news software that utilizes the power of big data and machine learning technologies. It literally grinds through a billion or more websites along with news services, filings, social media sources and more to quickly deliver exactly the information the analysts need (and might be missing), covering over 500 financial events, 30K global equities, commodities, forex and top 100 cryptocurrencies.
Alt Data Drives Job Growth
The increasing interest in Alternative Data has inspired some people to cleverly reframe their job positions. Up until recently, data buyers were essentially tasked with deciding things like whether to buy Brazilian bond data from Thomson Reuters or Bloomberg. Or, they were tasked with double checking that their firm was not overpaying for exchange fees.
The smartest sourcing managers have transformed themselves into Alternative Data experts thanks to the need to sort through thousands of potential data suppliers.
New Alternative Data Sources & Technology Featured in AltHub
New data sources and technology are added to AltHub every week.
Here’s a look at the latest data providers added:
Peak Soil Indexes - Generates responsible, timely, robust indexes derived from actual farmland sales for real-world price transparency.
ktMINE - World’s largest repositories of Intellectual Property data and documentation for research.
MariData - Live database of global marine cargo trade activity between over 7,000 ports, including cargo details and trade indices for monitoring macro and micro performance.
RxData.net - Pharmaceutical pricing, reimbursement, formulary placement and regulatory registrations. Insights on life science commercialization.
Mercaris - Up-to-date, accurate information on market conditions for organic and non-GMO commodities. The trading platform also allows buyers and sellers to meet online and trade physical commodities.
Tipigo - Mines for key investment ideas among thousands of recommendations made by hundreds of professional analysts. Tipigo's engine is designed to locate outperforming investment opportunities tailored to specific investment profiles.
New Geolocation Dataset Platform Launches Free Trial Offer
Alpha Hat is an analytics platform to visualize and use alternative datasets in your workflows. Users can harness data to understand company health and performance in real-time. Alpha Hat is offering early adopters a chance to try out the platform. If you are interested, please click below to contact Alpha Hat for a free trial.
Example insights from the platform:
- Chipotle’s Queso launch drives repeat customer traffic
- Dunkin' Donuts' exposure to the North East leaves it vulnerable to bad weather
- Hollister increasing discounting due to poor traffic
- Walmart benefits from Hurricane Harvey in Houston
- Nordstrom's "Anniversary Sale" leads to massive share gains vs. peers
- Retail traffic continues its secular decline
New Nano Satellite Provider: Spire is looking to engage with funds on research ideas
Spire, named one of 2017's most influential Satellite firms, has raised over $170mm to support their own 28+ satellites and one of the largest ground station frameworks. Spire reaches into parts of the world where collecting data is notoriously difficult. It gathers data and analytics 100 times a day globally with its Low Earth Orbit (LEO) satellite constellation.
- Custom services with great potential for developing unique alternative data
- New sensors deployed in just months is the holy grail of signal intelligence
- Advances in computing, radio, and sensing are continuously integrated into each generation of satellite
- Spire has launched thirteen generations of the Lemur-2 spacecraft