Hedge Fund Managers Are Buying Your Credit Card, Bluetooth, & Wi-Fi Data Hand-Over-Fist
Hedge fund managers continue to mine all sorts of "alternative data" in order to try and gain trading edges. This now includes seeking out consumer habits from devices like Fitbits, Rokus and Teslas, according to Bloomberg.
As we have reported on before, alternative data is being bought hand over fist by hedge funds like Steve Cohen's Point72 Asset Management and Ken Griffith's Citadel. Many are even paying large sums for it.
Michael Marrale, chief executive officer of M Science said:
“There is not one major hedge fund or asset manager that doesn’t have data initiatives underway or that are not using alternative data in some way.”
Spotting trends in consumer habits is a big business and JP Morgan estimates that the market for big data could reach more than $200 billion by next year. Even then, the data needs to be analyzed, scrubbed, organized and aggregated to be of use.
There has been "incredible demand" for this data, according to Marrale.
So what exactly are hedge funds looking at?