Alt data leads at firms like Point72 explain how to pitch their firm - Business Insider

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We asked 7 alt data leads at big names like Bridgewater, Point72, and Man Group how to pitch them on new data feeds. Here's how to win them over.

, Business Insider reached out to some of the biggest banks, hedge funds, and trading firms in the world to get a sense of what their alternative data strategy is, the type of data they want, and how they want to be pitched. At Balyasny, data serves both quants and fundamental tradersFor Balyasny Asset Management, a centralized approach is the key to its alternative data strategy.

"With one data team to collaborate with, we've uncovered a multiplier effect in our use of alternative data," he added. "For example, risk arb portfolio managers might use alternative data to track potential M&A transactions and share this with our index [rebalance] portfolio managers to aid in their process."

"The most exciting thing alternative data offers over traditional data is its granularity," Preclaw told Business Insider via email. "We can provide our clients with actionable insights and answer very specific research questions that would have been impossible in the past." While Preclaw declined to disclose the bank's budget for alt data, he did have some advice for prospective providers. First, it's important to provide written material about the dataset before even trying to set up a conversation. When a chat does occur, Preclaw said the bank is eager to understand what the data set is offering "in a very specific way."

"This has been particularly useful as we navigated the uncertainty over the last couple of months," Karasz tells Business Insider. "If the data is high quality, is unique, and has a large number of observations, there's a good chance that we are interested in looking at it," he added. The entire process of sourcing data has evolved greatly in the last few years, he added. Overall, he said Jump is always eager to find new data sources.

"We believe this two-way dialogue keeps the door open to hearing more from the vendor in the future," he added.As Man Group's director of data science, Hinesh Kalian is responsible for the massive firm's data acquisition strategyHinesh Kalian, head of data strategy for the world's largest publicly traded hedge-fund manager, has a big and diverse organization to think about when he is buying outside data.

"In the current environment, it's no surprise that data sources that provide insight into changes in consumer behavior and economic health are very relevant. Data related to consumer spending, footfall traffic measures, consumer sentiment, supply chain dynamics, and employment data are particularly interesting in the current environment."

 

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