Hedge Funds are Tracking Your Every Move
This Interview Originally Appeared in Business Insider
Rachael Levy Feb 4, 2017, 12:03 PM
“It is one of the hottest trends in investing.
Often called "quantamental," it's a new investing strategy that uses algorithms to parse through reams of new data sets referred to as "alternative data."
Hedge fund managers, in particular, have always sought an edge over competitors; now they're vying for new data sets that their competitors don't have, or haven't thought of using.”
“Quantamental investing in short, it's the future of investing. If you're talking with people in nance programs — the Whartons of the world — and you ask those students in investment clubs how they think about investing, to them it feels natural that, obviously, you're going to use any data to make an investment. The analyst is still in control, but now they're augmented by this data and technology. There's still a human decision-maker, but their decisions are now more accurate, more predictive of what they're trying to do. It just seems to me — and many others — like this is a natural progression of investing. This is something that has been done for a long time, and there's denitely a history of people doing deep due diligence on companies they're investing in. With this data and technology, they're doing that, but on a larger scale. In general, once you gure it out, it's going to be the future of investing.”