There is an interesting article in today’s Financial Times on the growth of alternative data industry.
The past few years have seen vast improvements in speed and quality of big data analysis, with better satellite imagery and smarter computing enabling a whole raft of new analysis and data sets, so it is not surprising that funds are increasingly turning to alternative data channels – from analysing live Tweet content to observing global copper smelting activity.
Unsurprisingly, investors/ merchants have been seeking that edge for thousands of ago. 10 years ago, it was the high frequency trading firms looking for the speed advantage (remember Flash Boys). The mid 19th century saw the arrival of the telegraph. And before that it was the port representatives and strength of networks - famously, Rothschild couriers informed Nat Rothschild of the 1815 Waterloo victory a full day ahead of the British government.
Growth of alt data analysis