As hedge funds and asset managers seek to boost returns and explain their strategies to clients, they are increasingly turning to alternative data sources. Investors are spending nearly $183 million annually on such data alone, according to a Greenwich Associates study. Tabb Group estimates the industry could more than double in size in the next five years, while a JPMorgan study shows that all in the buy side could be spending from $2 to $3 billion annually when hardware and analytic costs are considered. Despite the high costs, those purchasing the data are overwhelmingly satisfied, with a Quinlan & Associates…
Investors Love Alternative Data, But Will It Remain "Alternative?"
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.