Alternative Data in Active Asset Management

19 Pages Posted: 21 Aug 2024

See all articles by T. Clifton Green

T. Clifton Green

Emory University - Department of Finance

Shaojun Zhang

The Ohio State University

Date Written: July 25, 2024

Abstract

Alternative data are data gathered from nontraditional sources beyond company filings and analyst research. Alternative data are crucial in investing, offering unique insights and competitive advantages. The demand for alternative data has skyrocketed in the past two decades, due to the regulatory changes and the growing importance of intangible assets such as intellectual property. Alternative data cover various sources, including firm-released information, government-released information, information about investor attention and trading, and third-party information. However, alternative data landscape is constantly evolving due to alpha decay, technological advancements, regulatory changes, and market efficiency. These challenges require investors to continuously adapt their strategies, discover new data sources, and develop sophisticated analysis techniques to maintain an edge in an increasingly data-driven financial world.

Keywords: alternative data, investment, active investing

JEL Classification: G10, G11, G12

Suggested Citation

Green, T. Clifton and Zhang, Shaojun, Alternative Data in Active Asset Management (July 25, 2024). Fisher College of Business WP No. 2024-03-012 and Charles A. Dice Center WP No. 2024-12, Available at SSRN: https://ssrn.com/abstract=4932677 or http://dx.doi.org/10.2139/ssrn.4932677

T. Clifton Green

Emory University - Department of Finance ( email )

1300 Clifton Rd.
Atlanta, GA 30322-2710
United States
404-727-5167 (Phone)
404-727-5238 (Fax)

Shaojun Zhang (Contact Author)

The Ohio State University

2100 Neil Avenue
Columbus, OH 43210-1144
United States

HOME PAGE: http://sites.google.com/view/zhangshaojun

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