As traditional data sources like company filings, stock price, and transaction volume have gotten over-analyzed and over-engineered, asset managers are increasingly shifting their focus to novel types and forms of data such as satellite images, credit card spend, website traffic, app usage, social media posts, geolocation, and news feeds to guide their investment strategies. This explosion in the volume of data, combined with the availability of cheap compute power and the rise of AI, has created an enormous opportunity for investment managers to lead their peers through an information advantage or risk being left behind.
In this discussion with Alpha-DNA, we examine the alternative data landscape and the applicability of AI tools to enhance alpha capture, including specific use cases, as well as some of the challenges to deploying such technology.
