Alternative data

Alternative data can be defined as the data obtained from non-traditional sources such as credit card transactions, or email receipts. Whilst alternative datasets are often unstructured, this is information they would not be able to obtain using traditional sources such as company reports, analyst forecasts, and management feedback, and alternative data is often used by investment firms to help gain an indication of future performance of a company. It is now estimated that more than two thirds of hedge fund managers are currently using, or are at least actively testing, alternative data sources.