Alternative data sets … quality is the challenge, not quantity
There are an estimated 445 alternative data providers in the funds industry, serving the needs of both traditional and alternative fund managers. This is, according to alternativedata.org, an industry that is projected to be worth USD350 billion in 2020. But while there is no doubting the quantity and diversity of data sets one can acquire, how valuable really are they?
It is a valid question when one considers that the average dollar spend on alternative data, for 2020, will be USD158K for those running less than USD1 billion in AUM, rising to an estimated USD764K for those running north of USD1 billion.