Citadel has hired a top data scientist from Uber. (Fortune) Where Fidelity, Schroders and Aberdeen are finding their data analysts: “There’s a wealth of skillsets out there that are very transferable. I’d love to hire a biologist—specifically in terms of understanding networks of organisms and ecosystem dynamics. There’s a lot we in finance could learn from that area.” (WatersTechnology) MiFID II is catalyzing disruption of sell-side research by data providers and independent research firms: [Clayton] Christensen’s theory is involved, but his language is clear: “Disruption works because it is much easier to beat competitors when they are motivated to flee rather than fight.” This phrase is core to the new research firms’ business models. Sell-side incumbents are stuck with their high-cost products targeting top-tier fund managers. New research firms push streamlined, data-led primary research targeting hedge funds and the alternative buy-side in areas that high-cost incumbents are unwilling, or unable, to focus on. (The Market MogulThe Market MogulMarkets MediaInstitutional Investor) An alternative data provider has shut down: Founded in March 2013 by former SAC trader Nadir Khan, Qineqt sought to outsource the management of alternative data for hedge funds and other investment managers. It employed a large staff in Pakistan to collect, clean and database data, while providing datamining tools to extract investment strategies based on the data. (Integrity Research) Analysis of mall REITs using geo-location data (Thasos Group) The Co-CIO of a $10b hedge fund has left to join a data infrastructure startup: David Gu, co-CIO and partner at Capula, has just left the hedge fund to join Adarga Limited, a tech firm that uses machine learning and cognitive computing to help clients delve into reams of data. (eFinancialCareers) 43 of the top big data companies to work for, according to JP Morgan.(eFinancialCareers)
The 'Digest' is a collection of the alternative data pieces we’ve been reading that are most relevant for fundamental investors.
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