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40 Percent of Institutional Investors Lost More Than $10K Due to Bad Corporate Event Data
Traders Magazine Online News, September 13, 2018
Bad data can hurt. Especially if it materializes on the bottom line.
Almost half, or 40% of those Institutional investors surveyed by Wall Street Horizon, have reported losing upwards of $10,000 thanks to bad or errant corporate event data.
The firm, Wall Street Horizon, tracks corporate event data and correlates it to stock price movements, helping investors stay one step ahead of the data curve. In its latest Corporate Event Research Survey, the firm said the results show that companies are increasingly incorporating corporate event data into their trading strategies in order to mitigate monetary losses and react more quickly to market volatility.
The survey polled more than 100 institutional market participants, nearly half of whom were quantitative or discretionary fund managers.
“This year’s survey results reaffirm that accurate corporate event data and tracking event movement is becoming increasingly critical to institutional investors and traders,” said Barry Star, CEO, Wall Street Horizon. “Academic research has shown that ‘corporate body language’ - changes to a corporate event calendar - can provide predictive signals as to the future state of the company's health. As investment professionals look for new ways to uncover alpha and reduce losses, access to accurate and timely data will continue to be a top priority.”
Key findings are as follows:
More than one-third of participants have lost money as a result of either bad or unknown corporate event data, with nearly 40 percent of those having reported a loss of more than $10,000. This data is aligned with last year’s survey reinforcing that a lack of accurate data can have significant consequences.
More than half of participants (55 percent) said tracking corporate event data is essential for monitoring stocks on their watchlist; more than 30 percent reported they needed corporate event data to make trades based on event changes.
Despite the hype around cryptocurrencies, 50 percent of respondents said they are “not likely” to purchase data services to support crypto trading.
Starr said the results reinforce trends from 2017 survey, as well as indicate lack of industry support around crypto trading.
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