White Paper - Discovering The Web’s Hidden AlphaHow the buyside can make full use of online information
Wall Street has been hesitant to adopt the web as a source o inormation despite an emerging awareness o the value it represents. Tis is primarily due to the signiﬁcant amount o noise on the web and compliance concerns.Massive amounts o data are being generated every minute, as we see in this inographic, and the pace o data creation is accelerating. In act, an IDC Digital Universe study ﬁnds that the world’s inormation doubles about every year and a hal
. While the vast majority o web content is noise, signals are being ound i technology and research analysts are utilized in the right way. In addition to this, the majority o Wall Street ﬁrms prevent their employees rom accessing highly valuable areas o the web like orums and social media or compliance reasons; these sites are not read-only and there is a data storage requirement o 5 years but witter and other social media do not oﬀer this unctionality.Tat said, the web is ast becoming an essential component o the investment process or a wide range o investors on the buyside. Hedge unds, asset managers, banks, trading desks, and central banks are among those already leveraging web inormation in diﬀerent ways. Firms such as Bridgewater, Artemis and Mediolanum Asset Management have publicly disclosed that they incorporate online inormation into their investment strategy. Tese ﬁrms are blazing the trail but it is only a matter o time beore the rest o the buyside are aced with a decision: either develop a strategy that incorporates web inormation or get lef behind. Tis paper discusses how web inormation is being leveraged by the buyside today, and how inormation will be leveraged by innovators in the uture.