Privacy vs. Alpha: A Conversation

10 Pages Posted: 4 Nov 2019

See all articles by Apurv Jain

Apurv Jain

MacroXStudio; Harvard Business School; Microsoft Corporation - Microsoft Research - Redmond

Neil Seeman

affiliation not provided to SSRN

Date Written: October 24, 2019

Abstract

Privacy concerns are the elephant in the room as we seek investment alpha from alternative data. This article introduces and discusses how we may be underestimating the tail risks for an investment firm in the presence of unclear regulation, noisy data, and moral hazard. It introduces two potential solutions, the first is a risk mitigation solution from the field of healthcare of better oversight and incentive alignment, and the second a reward increasing solution of privacy friendly alpha by design.

Keywords: Data Privacy, Investment Alpha, Big Data, Machine learning, Moral Hazard

Suggested Citation

Jain, Apurv and Seeman, Neil, Privacy vs. Alpha: A Conversation (October 24, 2019). Available at SSRN: https://ssrn.com/abstract=3474983 or http://dx.doi.org/10.2139/ssrn.3474983

Apurv Jain (Contact Author)

MacroXStudio

981 Mission st.
San Francisco, CA 94103
United States

HOME PAGE: http://www.macroxstudio.com

Harvard Business School ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

Microsoft Corporation - Microsoft Research - Redmond ( email )

Building 99
Redmond, WA
United States

Neil Seeman

affiliation not provided to SSRN

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