Neudata is pleased to announce the official launch of its alternative data use-case research platform designed for use by investment managers seeking a competitive edge. This new use-case research capability is available as an enhanced feature of the Neudata Scout digital data intelligence platform.
Our new alternative data use-case research tool encompasses any material which demonstrates how an alternative dataset is used in investment management toward a particular strategy, or investable index investment theme, or specific analysis purpose, said Rado Lipuš, CFA, Founder and CEO of Neudata. Use-case research provides clear evidence – such as through backtesting or modeling — as to how a particular dataset can be useful in generating alpha.
The new Neudata alt data use-case research tool combines voluminous data from academia and sell-side investors, as well as independent and Neudatas proprietary research. It is designed to educate investment managers about existing alpha evidence research all in one convenient place, and allows them to better generate investment ideas.
The emergence of todays huge amount of alternative data has led to vexing problems for investment managers, Lipuš added. This includes understanding what specific research evidence of alpha is available, knowing how to best leverage alt data such as e-receipt datasets for specific themes, and for which investment instances datasets – such as ESG – can provide alpha generation. Additionally, targeted alternative datasets can prove critical in potentially identifying investment failures, such as the insolvency, bankruptcy and liquidation of U.K. construction company Carillion.
Neudata, headquartered in London, with offices in New York City and Geneva, vets alternative data for investment managers. Neudatas expertise lies in scouting and evaluating alternative datasets and assisting investment managers in selecting relevant sources for backtesting and research. Neudata is uniquely equipped to provide metadata and up-to-date objective research through an ever-expanding network of data vendor relationships.
Unlike data brokers, Neudata does not sell data. Instead, Neudata aligns interests with clients in finding sources that are most promising for alpha generation. As such, Neudata’s clients are often among the first in the industry to be made aware of new data launches and use-cases.