"Hedge funds and others were better able to predict quarterly earnings and commodity prices thanks to so-called alternative data from aggregated credit-card receipts, retail foot traffic tracked by cellphones, and satellite images of crop fields."
"The publicly accessible data that was once cutting-edge is now 'commoditized' by AI, he said. BlackRock, the world's largest asset manager with $14 trillion in assets, has already turned its agents internal to find potential investment signals within past communication between investment professionals and old reports on opportunities."
"AI is 'great at structuring unstructured data,' said Jacob Bowers, a vice president of quantitative research at BlackRock, on a panel at the Future Alpha conference in New York on Tuesday, and 'some of the best unstructured data you have is internal.'"
Asset managers have relied on alternative data sources to predict market trends, but these have become commonplace. The rise of AI has further diminished the uniqueness of publicly available data. Now, firms are turning to their internal data, including past communications and reports, to find investment signals. BlackRock is leading this shift by leveraging its vast internal data resources. The trend indicates a future where internal data becomes the key differentiator in asset management strategies.
Read at www.businessinsider.com
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