We completed a study published by Integrity Research looking at the age distribution of alternative data users vs. the entire buy-side equity analyst industry. We found that Millennials are 2.5x more likely to use alternative data than non-Millennial equity analysts. 82% of analysts who use alternative data are Millennials (20-38 year olds), highly concentrated between the ages of 26-34, based on YipitData’s user base.  More generally, Millennials represent 65% of buy-side equity analyst demographics based, on data from Ipreo. Millennials Main Users of Alternative Data Source: YipitData, IPREO; the scale of the alternative data users was enlarged to illustrate relative concentration. According to YipitData, the average age of alternative data users is 33 years old, compared to 36 years for buy-side analysts generally. It is likely that the core concentration of Millennials became investors 5-7 years ago, right at the time when alternative datasets started exploding. As a result, Millennials began incorporating alternative data as they were becoming investors. More experienced analysts and PMs have a steeper learning curve, having to adjust their investment style and rethink what’s possible.
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