Alternative data is defined as non-traditional data investors use to gain insights into their investment process. Unlike traditional datasets data such as financial statements and sales figures, alternative data offers investors insights into a company well before the information becomes publicly available.
The case with WeWork’s IPO is great Example. Despite the hype around WeWork’s IPO, Fairhair.ai Director, Samantha Monk, predicted against popular consensus that WeWork is not the market-defying unicorn most hope it would be.
With the help of alternative datasets, she identified several alarming issues such as founder cashout, creative accounting practices and ESG concerns. Most importantly, she was able to pinpoint Softbank’s reluctance to go ahead with Wework’s IPO ahead of Softbank’s announcement yesterday.
The explosion of alternative data has levelled the playing field between ordinary investors and hedge fund managers, allowing anyone with a laptop and internet access (and the willingness to learn) to deliver market-beating performance.
To help you better understand the potential of alternative data and how you can make use of them, the team at DDI has prepared an infographic for you highlighting key statistics and trends of alternative data.
