As the use of alternative data within the investment community grows more prevalent, this prompts questions on dataset crowding and its implications for alpha generation. While opinions may be divided on the significance of buy-side client numbers in evaluating a dataset, an analysis of dataset crowding serves as an interesting source of insight into the interplay between supply and demand for different data types.
In the following analysis, we explore:
Below we aggregate client numbers for individual datasets by dataset type. As expected, the chart shows a concentration of interest in some of the more ‘traditional’ data offerings, such as financial products, fundamental and fund flow datasets. However, perhaps more surprisingly Internet of Things and ESG datasets
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