Buy-side firms have unprecedented access to data, and powerful tools to analyze that data. This is a good thing. However, if everyone has access to the same data and similar tools to analyze it, the quest for alpha becomes harder than ever. So institutional investors are looking for new data sets from which to extract alpha. We present to you: alternative data.
Alpha is the needle in the haystack, but now everyone is on the haystack with awesome pitchforks
Tom Myers is the founder of Data In Harmony (DIH), a data consultant and provider. DIH help firms find the data they need, validate & clean data, integrate data, and monetize their data. DIH also provides a wide variety of financial and alternative data, as well as data engineering tools.