In the first of a two-part series, we provide our take on the state of the alternative data industry from a macro perspective. Via three crude examples concerning Brexit, Sub-Saharan Africa and China, we also flag the basics of how alternative data can often trump conventional methods in order to obtain more timely and accurate investment intelligence.

In the following three-part series, we provide an alternative data perspective on the current location data market, beginning with an overview of existing positioning technologies and the different ways that location data is made available to third parties.

We provide an overview of the significant wide-ranging implications of oil and fuel theft, including its negative impact on oil and gas companies, governments, and economic growth. We also share a brief analysis by a supply chain risk intelligence data provider, which showcases how alternative data can be used to identify and analyse the extent of illegal pipeline tapping in a particular region.

House Price Indices are one of the most closely observed economic indicators in the world, especially since the global recession in 2008. However, various government and private organisations rely on proprietary and/or public datasets to produce their own interpretation of an HPI. We evaluate some of the leading HPIs in the UK (construction methods, outcomes, advantages, and disadvantages) and highlight relevant alternative data sources for readers interested in constructing a more appropriate HPI for their needs.

A recent survey of 80 hedge funds by AIMA found that almost 40% of respondents are already engaging in responsible investing practices. However, data quality issues appear to be the biggest barrier to increasing such initiatives. For quants, these data limitations have made building systematic strategies particularly challenging. At Neudata, we see evidence of this changing as a result of alternative data addressing the many quality-related shortfalls plaguing the industry.

We highlight key findings from a commodity alternative data provider's recent backtest on their US corn production forecasts. The results establish that the group’s forecasts lead USDA estimates, market consensus, and corn futures closing prices. Neudata are the first third party to be made aware of these results.

From counting cars at mall and shopping centre parking lots to gauge consumer traffic, to calculating the shadows cast on floating-roof tanks to estimate global crude oil supply, satellite data has become one of the more well-known types of alternative data in the market. With significant numbers of institutional investors realizing the value of this data, we address the current state of the industry, as well as some words of caution when approaching satellite data.

We summarise a case study illustrating how corporate jet activity can yield signals that help investors to identify the most likely acquirer for a takeover target. We also outline an alternative approach to tracking corporate jets using free alternative data sources.

With 90% of today’s data created in the last two years, opportunities to leverage vast amounts of unstructured data sources are growing at an exponential rate. The proliferation of AI and big data is transforming the ESG industry – providing investors with a greater supply of more timely information and the ability to develop more sophisticated investing strategies. Alternative data is the driving force behind ESG 2.0.

We summarise key findings from a backtest using an alternative data provider’s cognitive data scores and shareholder returns. Scores were sourced from statements made by company executives on quarterly earnings calls. In short, the backtest supports the view that higher than trend value scores are likely to precede shareholder gains.