Alternative Data Strategy: How and Why

This post was first published on the Arcadia Data website.

An alternative data strategy is a collaborative, iterative, and exploratory process that is driven by domain subject matter expertise. That is our take from the research survey that we commissioned from Greenwich Associates to understand how buy-side portfolio managers, chief investment officers, and fund managers “Put Alternative Data to Use.” Our primary focus was to discover the “how” and “why” of implementing an alternative data strategy, because that is the basis from which to determine which tools and processes would work the best, and to identify the personas who would use them. Even within the buy-side community, we found that asset managers and hedge fund managers are distinct personas, and have differing perspectives on the use of alternative data.

In this part one of a two-part series, we consider buy-side perspectives as they relate to the types of alternative data being used, the measurement of return on investment, and how deep they want to get into the data.