Alternative Data News. 18, November 2020

Alternative Data Newsletter

Finding sources and uses for alternative data can be difficult. At CloudQuant we regularly read and search the internet for new sources of data that can be used in our mission to find alpha signals and build quantitative trading strategies. We recognize that we are technology and data junkies so we wrote our own crawler that specifically seeks out web pages, posts, and news articles that give us a snapshot of what is going on in the world of Alt Data. The following is a collection of articles that we think you will find interesting from the past week.


Industry Stats

This page contains relevant facts and figures related to the alternative data industry for institutional investors. Unless otherwise noted, these figures are per internal alternativedata.org estimates or based on our database of providers.

Read the Full Story…

CloudQuant Thoughts : Just a nice pie chart of our industry. Where do you fit?

In 2021, off-the-shelf datasets will be on the rise for AI model development

If there’s one thing that companies large and small can agree on, it’s that deploying effective artificial intelligence (AI) is challenging. Not every organization has the funds, specialized teams, and annotators required for a large-scale AI deployment, and even those that do struggle with collecting enough high-quality data to build accurate models quickly, or update them with the right frequency. Deploying and maintaining AI with speed is essential for a competitive advantage in this rapidly-evolving space, which is why many companies are looking to third-party options that enable them to scale quickly.

In particular, organizations are increasingly relying on off-the-shelf, or pre-built, datasets to provide needed data conveniently with limited risk. These datasets are cost-effective alternatives that can accelerate deployments and provide that last percentage or two of accuracy required to meet desired confidence thresholds. In part two of our five part series on 2021 predictions, we focus on the rise of off-the-shelf datasets.

2020-11-18 00:00:00 Read the full story…
Weighted Interest Score: 4.4556, Raw Interest Score: 1.5044,
Positive Sentiment: 0.2925, Negative Sentiment 0.0975

CloudQuant Thoughts : Off the shelf suggests mediocrity, CloudQuant’s industry leading data access fabric –  CloudQuant Data Liberator – lets you access thousands of datasets using the same simple code. Head over to our data catalog to see huge range of Alternative data we have available.


ESG Section

ICE Reports Record Activity Across Its Environmental Complex

Intercontinental Exchange, a leading operator of global exchanges and clearing houses and provider of mortgage technology, data and listings services, today reported record open interest across its environmental complex as participants price climate risk.

The environmental complex – which includes futures and options connected to ICE’s European (EUA) and California Carbon allowances (CCA), Regional Greenhouse Gas Initiative (RGGI) and renewable energy credits (RECs) – hit record open interest of approximately 2.65 million contracts on November 12, 2020.
2020-11-17 05:35:03+00:00 Read the full story…
Weighted Interest Score: 3.1124, Raw Interest Score: 1.6399,
Positive Sentiment: 0.2343, Negative Sentiment 0.0335

Morningstar Formally Integrates ESG Into Analysis

As assets and interest in sustainable investing continue to grow, Morningstar unpacks ESG risks to meet investor demand for in-depth qualitative and quantitative research to curate ESG investment choices

Morningstar, a leading provider of independent investment research, today announced it has begun formally integrating environmental, social, and governance (ESG) factors into its analysis of stocks, funds, and asset managers.

Morningstar equity research analysts will employ a globally consistent framework to capture ESG risk across over 1,500 stocks. Analysts will identify valuation-relevant risks for each company using Sustainalytics’ ESG Risk Ratings, which measure a company’s exposure to material ESG risks, then evaluate the probability those ri…
2020-11-18 05:01:20+00:00 Read the full story…
Weighted Interest Score: 5.8561, Raw Interest Score: 2.3620,
Positive Sentiment: 0.0980, Negative Sentiment 0.0544

Panelists discuss Covid-19, ESG and investor appetite in “extraordinary” year for hedge funds

This year’s Hedgeweek LIVE Europe digital summit opened with a broad overview of the prevailing hedge fund industry landscape in 2020, exploring a range of themes including the shifting perception of hedge funds among investors, the impact of Covid-19 on market opportunities, the increased importance of ESG among both managers and allocators, and the start-up environment for fledgling funds.

Underlining the importance of emerging managers within the hedge fund industry, Jack Inglis, CEO of the Alternative Investment Management Association, said those firms managing USD500 million and below comprise the majority of managers, and described new funds as the “lifeblood” of this business.
2020-11-11 00:00:00 Read the full story…
Weighted Interest Score: 4.2398, Raw Interest Score: 1.8611,
Positive Sentiment: 0.2091, Negative Sentiment 0.1673

US Sustainable Investing Assets Reach $17.1 Trillion

The US SIF Foundation’s 2020 biennial Report on US Sustainable and Impact Investing Trends, found that sustainable investing assets now account for $17.1 trillion—or 1 in 3 dollars—of the total US assets under professional management. This represents a 42 percent increase over 2018.

  • The Trends report counts two main strategies as sustainable investing: ESG incorporation—applying various environmental, social and governance (ESG) criteria in investment analysis and portfolio selection—and filing shareholder resolutions on ESG issues.
  • The total US-domiciled assets under management using sustainable investing strategies grew from $12.0 trillion at the start of 2018 to $17.1 trillion at the start of 2020, an increase of 42 percent.
  • This is 33 percent – or 1 in 3 dollars – of the total US assets under professional management.
  • The top three specific issues for money managers and their institutional investor clients are climate change/carbon emissions, sustainable natural resources/agriculture and board issues.
  • From 2018 through the first half of 2020, 149 institutional investors and 56 investment managers controlling $1.98 trillion in AUM led or co-led shareholder resolutions on ESG issues.

2020-11-17 05:44:07+00:00 Read the full story…
Weighted Interest Score: 3.9395, Raw Interest Score: 2.5750,
Positive Sentiment: 0.0387, Negative Sentiment 0.1162

US Treasury Could Issue Inaugural Green Bond Under Biden

The US could issue its first sovereign green bond market under the Biden administration which could spark significant growth in the market.

Bram Bos, lead porfolio manager green bond at NN Investment Partners, the Dutch fund manager, said in an email that President-elect Joe Biden’s commitment to rejoining the Paris agreement when he is inaugurated symbolises a broader transformative shift in climate policy.

The US could issue its first sovereign green bond market under the Biden administration which could spark significant growth in the market.

“The Biden administration will invest heavily in sustainable infrastructure and clean energy, which could lead to an inaugural green US Treasury issue and further boost the global green bond market,” he added.

2020-11-10 06:09:49+00:00 Read the full story…
Weighted Interest Score: 3.1717, Raw Interest Score: 1.6781,
Positive Sentiment: 0.1831, Negative Sentiment 0.1831


Nasdaq’s Quandl just hired a new executive for what it believes is the next big opportunity for alternative data — Europe

Alternative data on US companies and trends have become table stakes for sophisticated investors, but the same information is harder to come by in “fragmented” Europe.

The opportunity for legitimate and trustworthy datasets on European consumers is “untapped,” according to Bill Dague, head of alternative data for Nasdaq, which bought Quandl roughly two years ago.

2020-11-18 00:00:00 Read the full story…
Weighted Interest Score: 6.8009, Raw Interest Score: 2.1500,
Positive Sentiment: 0.1344, Negative Sentiment 0.2419

Goldman Sachs in talks to acquire Trading Technologies

Goldman Sachs is reportedly in advance talks for a $500 million takeover of Trading Technologies.

Citing four unidentified sources, Global Investor Group says the US investment bank is in late-stage talks about buying the Chicago-based trading and data analytics software firm. Rumours that TT was in the shop window first began circulating last month. Founded in 1994, TT supplies software to most of the world’s biggest investment banks, brokers and trading firms.

2020-11-12 14:13:00 Read the full story…
Weighted Interest Score: 5.7432, Raw Interest Score: 3.5473,
Positive Sentiment: 0.0000, Negative Sentiment 0.1689

What to Learn to Become a Data Scientist in 2021

…and why the data science generalist will triumph

When I started learning data science a few years ago most job ads requested a PhD, or at the very least a masters, in maths, statistics or a similar subject as an essential requirement.

Over the last couple of years, things have evolved. With the development of machine learning libraries that abstract away much of the complexity behind the algorithms, and a realisation that practically applying machine learning to solve business problems requires a set of skills that are not usually acquired through academic study alone. Companies are now hiring data scientists based on their ability to perform applied data science rather than research.

Applied data science that delivers value to a business in the fastest possible time requires a very practical skillset. Additionally, as more companies migrate their data and machine learning solutions to the cloud, It is becoming paramount for data scientists to have an understanding of the new tools and technology relating to this.

2020-11-15 18:35:33.545000+00:00 Read the full story…
Weighted Interest Score: 3.4218, Raw Interest Score: 1.9608,
Positive Sentiment: 0.1751, Negative Sentiment 0.0350

What Does a Data Engineer’s Career Path Look Like?

Data science is a very attractive career path, but finding your niche can be tricky. Big data is changing the future of almost every industry. The market for big data is expected to reach $23.5 billion by 2025. Data science is an increasingly attractive career path for many people. However, the outlook is hazy for people that are not as familiar with the career path.

If you want to become a data scientist, then you should start by looking at the career options available. Northwestern University has a great list of ways that people can pursue a career in data science. You should also learn the career path that you need to follow to get started, which includes learning the right programming languages.

2020-11-08 Read the Full Story…

After Free Statistics Course, IIT Kanpur Brings Free Online Data Science Courses

After the recent announcement by Indian Institute of Technology, Kanpur to offer free statistics courses during the lockdown period, they have announced two new free online courses on data science. This time they have offered it on SWAYAM NPTEL platform, which is a two-part course, as below:

  • Essentials of Data Science With R Software – 1: Probability and Statistical Inference
  • Essentials of Data Science With R Software – 2: Sampling Theory and Linear Regression Analysis

SWAYAM is a programme initiated by the Government of India to provide best teaching-learning resources to all, including the most disadvantaged. SWAYAM seeks to bridge the digital divide for students to make them digitally enabled.

2020-11-16 13:49:17+00:00 Read the full story…
Weighted Interest Score: 3.3630, Raw Interest Score: 1.9714,
Positive Sentiment: 0.1546, Negative Sentiment 0.0773

Capital allocation – Stewards’ inquiry

If investors buy stocks in an index, who watches managers?

Robert Fleming has a claim to be a pioneer of active asset management. His First Scottish investment trust pledged to invest mostly in American securities, with choices informed by on-the-ground research. Fleming saw that shareholders needed to act as stewards in the governance of the businesses that they part-owned. So once the fund was launched, in 1873, he sailed directly to America. It was the first of many fact-finding trips across the Atlantic over the next 50 years, according to Nigel Edward Morecroft’s book, “The Origins of Asset Management”.

The art of asset management is capital allocation. It is easy to miss this amid confusing talk of alpha and beta, active and passive, private and public markets. For investors of Fleming’s kind the work of finding the best investment opportunities and engaging with business was inseparable.
2020-11-12 00:00:00 Read the full story…
Weighted Interest Score: 3.3213, Raw Interest Score: 1.8116,
Positive Sentiment: 0.3136, Negative Sentiment 0.2323


This news clip post is produced algorithmically based upon CloudQuant’s list of sites and focus items we find interesting. We used natural language processing (NLP) to determine an interest score, and to calculate the sentiment of the linked article using the Loughran and McDonald Sentiment Word Lists.

If you would like to add your blog or website to our search crawler, please email customer_success@cloudquant.com. We welcome all contributors.

This news clip and any CloudQuant comment is for information and illustrative purposes only. It is not, and should not be regarded as investment advice or as a recommendation regarding a course of action. This information is provided with the understanding that CloudQuant is not acting in a fiduciary or advisory capacity under any contract with you, or any applicable law or regulation. You are responsible to make your own independent decision with respect to any course of action based on the content of this post.