The Economist explains

Why investors want alternative data

Today they promise a leg up; soon they might count as a necessity

By W.Z.

ASK any group of investors what one gadget they cannot live without, and they’ll likely point to their Bloomberg terminals. Its data services, and its rivals’, make it easy for analysts to scan through financial data generated by thousands of companies. The terminals’ ubiquity means that every investor needs one. It also makes it hard for punters to find any competitive advantage. For investors in search of an edge, the emerging world of “alternative data” is attractive.

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