alternative data

Alternative Data – A Beginner’s Guide

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Alternative data is gaining popularity among hedge fund managers and financial institutions these days. Despite the fact that it opens up new layers of challenges and complexities in the asset selection process, alternative data...
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A Quick Guide to Investment Algorithms

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Let's picture the stock market 30 years ago: Let's picture it now: Like many other areas now, the investment market has changed immensely with the help of technology. There is a new overlord- investment algorithms, which...
Hedging

Are You Ready for the Periodic Inflection Point? Part 2

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We discuss about the irreversible factors in global cycles and their drivers. We then discuss the risk aversion cycle and hedging, and how Bitcoin is becoming the Alpha of hedging assets. In Part 1, we...
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The Best Way to Use Stock Market Correlations

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When Alfred Winslow Jones pioneered the world's first "hedged" fund (the "d" was dropped later) he blew other investors away by borrowing funds to short 20% of the stocks trading at the time. He...
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Artificial Intelligence as a Tool for Investing

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Have you considered diversifying your investment portfolio? Of course you have. Have you considered diversifying the tools you use for investing? Maybe not. This is exactly what financial management firms are beginning to do. Industry-wide changes are happening...
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Web Scraping and Hedge Funds’ Alternative Data Strategy

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Data that was once hiding in plain sight can hide no more. With sophisticated software, new data continues to be extracted – or ‘scraped’ – from a growing variety of online sources. Coupled with...
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Quandl 2020 Alternative Data Conference

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Alternative data conferences connect actors in the buy-side ecosystem to explore novel use cases as the demand for alternative data is increasingly intense.  Only the largest and most sophisticated players with distinctly unique roles...
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Portfolio Diversification: How to Potentially Gain Better Returns per Unit of Risk

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This research article analyzes the impact of portfolio diversification when applied to a portfolio of stocks and bonds. In particular, it shows that by spreading the investment on uncorrelated asset classes an investor may...
Data Revolution

Quandl and the Alternative Data Revolution

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Alpha, as a measure of active management skills in the fund’s world, gauge the manager’s ability to beat the market. Skills aside, it is also largely related to information sources that the manager uses,...
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Using Google Search Trends to Predict Initial Jobless Claims

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For several years now, my focus has been on using alternative data of many kinds to predict macroeconomic statistics. When ran the Futures Group for the PDT Group at Morgan Stanley in the 1990’s...
Satellite Imagery

Looking to the Skies for Alpha

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We recently discussed how companies such as Quandl are leading this alternative data revolution. Now, quantitative hedge funds are only too willing to spend substantial amounts of time, money and effort obtaining such data,...
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How Hedge Funds Are Profiting From Your Data

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The Full Extent of How Your Personal Data is Being (Mis)used You are going to the supermarket for groceries; on your shopping list, you have fruits, chocolate, and paper towels. While this is a simple...
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Your Mobile Phone as a Gold Mine (for hedge funds)

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The alarm sounds. Time to wake up. Still bleary-eyed, you reach for your phone to check your messages. You turn the phone on. Before you know it, the tracking begins… But this tracking is not some...
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The Gem in the North: North Korea’s Untapped Mineral and Industrial Potential

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When North Korea appears in mainstream media headlines, one of the last descriptors you’d expect to see is “tremendous opportunity.” And yet, now that the U.S. and North Korea have concluded an apparently successful summit...
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Turning Dollars into Dimes: Time-Tested Options Strategies for Losing Money

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Creating great options strategies is a process of trial and error. This article is about those errors. Bad Strategy #1 — Selling Naked Options: The pinnacle of recklessness. This graph shows that if the market goes up, the...
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What Repo Market Injections Say About the Economy – Follow the Breadcrumbs

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How did we get here? One big clue lies in the repo market. We’ve found that people tend to forget (ourselves included) important factors, events, or definitions that are important for understanding what is happening...
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Why Is That Entrepreneur Raising So Much More Than Me?

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How much to raise is both an art and a science, a topic discussed at length in many other posts. What this article will focus on are the reasons specifically an entrepreneur similar to...
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How Finance Sector Can Benefit by Machine Learning Development and AI

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Making the right decisions and grabbing opportunities in the fast moving world of finance can make a difference to your bottom line. This is where artificial intelligence and machine learning make a tangential difference....
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Is Our House On Fire?

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Exploring Future Scenarios with the Changing Climate The growing number of high-intensity acute physical hazards like wildfires and floods have been a source of increasing alarm and concern for public and commercial interests alike.  Right...
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Who Designs the Stock Trading Software for Hedge Funds?

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The activity of a hedge fund is based on a free choice of investment strategy and necessary instruments. Foundations can take a variety of management approaches that are ultimately profitable. The difference between these...