How consumer data provider Yodlee can help bolster the buy-side portfolio-building process
Envestnet | Yodlee, a data aggregation and analytics platform specialising in consumer spending data analytics, says asset managers are increasingly seeking out such alternative data insights in their hunt for alpha.
Nikhil Nadkarni, Vice President, Data Products, explains how the consumer spending data analytics can help provide asset managers a view into consumer interactions with brands and incorporating insights into the investment research processes.
“Equity Researchers and Investment Managers can use consumer spending data analytics in their fundamental research to understand and forecast revenues, customer retention, customers’ lifetime values, customer churn and competitive analysis. Learning consumer spending patterns around online versus offline provides visibility into how consumer discretionary spending is shaping consumer behaviour especially during Covid-19."
Usage of alternate data, like consumer spending data analytics, is getting a lot of attention from institutional money managers as it delivers additional alpha in investment research. Such data analytics provide a lens for researchers and portfolio managers to validate an investment thesis and generate differentiated insights outside of just forecasting revenue.
Don’t miss out on the upcoming webinar hosted by HedgeWeek and sponsored by Envestnet | Yodlee where Nikhil Nadkarni and other panellists will discuss:
- How equity long/short managers are evolving their investment process using non-traditional data analytics.
- How is data management improving their approach to risk management?
- Why all alternative data analytics are not created equal (i.e. GPS data on shopping density in supermarkets doesn’t necessarily mean people are spending money)
- Why accessing de-identified credit card data analytics, as one example, can provide deeper insights into consumer retail activity (ie more tactical long/short positions for those trading consumer stocks)