Rado Lipuś, Founder and CEOThe lure of alternative data sets is largely the potential for an information advantage over the market with regard to investment decisions. With the volume of data available to investment managers increasing at such a rapid rate, selecting the most useful and relevant alternative data sets is a huge challenge that can easily slow down their investment process. The unstructured data gathered from various sources has a reduced impact, and it diminishes the information advantage derived from the data. There is a need to reduce the hassle associated with discovering and comparing basic features of datasets such as affordability, history, universe applicability, and many other factors. Alternative data will likely transform active investment management over the next five years, from hedge fund management to long-only mutual funds, and even private equity managers. Those firms that do not update their investment processes within that time frame could face strategic risks, and might very well be outmaneuvered by competitors that effectively incorporate alternative data into their securities valuation and trading signal processes.
Neudata, the global alternative data evaluation company, provides fund managers and quant strategists with alternative data intelligence and research from over fifteen hundred sources. Neudata’s expertise lies in scouting and evaluating alternative datasets and assisting investment managers in selecting relevant sources for backtesting and research. Neudata was founded in 2016 in London by Rado Lipuś, a 20-year veteran of the investment management industry with extensive experience in sales, fintech, and data innovation. Neudata has created a dataset selection tool, an innovative comparison tool to help clients navigate the rapidly growing universe of datasets in the most efficient way. The Neudata selection tool is custom-fit and free to use for all Neudata clients. Neudata clients will be able to compare sets of data across a range of metrics, helping them determine which is most relevant to their investment strategy. Neudata’s clients are always the first to know about new data launches and use-cases. “Our alternative data intelligence platform is half-human research dependent, and the other half is technology-dependent,” says Lipuś.
Unlike data brokers, Neudata does not sell data. Instead, Neudata aligns interests with clients by finding sources that are the most promising for alpha generation. Neudata is uniquely equipped to provide metadata and up-to-date objective research through an ever-expanding network of data vendor relationships.
Neudata connects alternative data providers to the world’s leading financial firms, asset managers, and hedge funds. “The uniqueness to our business model is that we provide a free service to the data providers and we charge a subscription fee to the buy-side to get access to that information and use our technology to make sense of the data sources,” adds Lipuś.
Our alternative data intelligence platform is half-human research dependent, and the other half is technology-dependent
Neudata works with Investment Management clients worldwide who manage more than $7tn in assets, helping them find, evaluate, and select new data sources that will advance their investment process. Neudata works with all types of alternative data, from sentiment to social media, weather to web-tracking, and economic to environmental. Providers are based in dozens of countries and range from small entrepreneurial start-ups to multinational conglomerates. Neudata’s service is delivered via its Scout ‘software as a service’ platform and expert consultancy. The company’s team of analysts in London and Asia sources and evaluates unique, granular and often hard to find information from over a thousand providers on a daily basis, enabling investors globally to make their best-informed decisions about what data to buy, and how to use it.
Neudata has officially launched an alternative data use-case research service designed for use by investment managers seeking a competitive edge. This new use-case research service is available as an enhanced feature of the Neudata alternative data intelligence platform. Neudata is building software solutions to tackle the barriers of adoptions for the buy-side. In order to keep pace with its growth projections, the firm is building its own team and recently the firm has hired its first CTO and numerous developers to expand its technology capabilities. With offices in New York City and London, the company has already established a US subsidiary, and it has a new data Inc in Delaware. Neudata has planned a series of global events in Asia, US, and Europe as well to bring together the supply side, the demand side, and also the technology part of the ecosystem. These events prove to be a great forum to network and to learn the whereabouts of the community.