The first use case in the hedge fund industry is squarely in the camp of informing decision-making, specifically around different types of investments. In another post, our Chief Technology Officer, Frode Bjerke, points out that there are really only three overarching use cases for location data across all industries: Informing decision making, Detecting change and Measuring change. This helps to keep track of market leaders in a given location. a Dunkin Donuts location becomes a Starbucks location).
Hedge funds also require a statistically relevant number of stable users for commercial visitation measurement, mapping to ticker symbols, and fresh venue data, including change in operational ownership (i.e. Thus, the attraction to alternative data providers. monthly) updates that offer a consistent window to detect change and measure impacts. Hedge fund managers place a strong emphasis on having historical data (a look back of at least one or more years to measure long term trends), as well as routine (e.g. Hedge fund use cases for location dataĪ hedge fund can use Unacast’s location data for measuring retail traffic trends, detecting population changes, and for probing into additional insights around foot traffic performance as it relates to brands, venues and geographic areas. The exact application of location data and data type needed by Bloomberg Data Marketplace users varies depending on the hedge fund use case.
Create new, custom economic indicators based on alternative data and.Decreased risk of a short squeeze (A situation in which a heavily shorted stock or commodity moves sharply higher, forcing more sellers to close out their positions and adding to the upward pressure).Increase scalability of market predictions.The ability to create differentiated portfolios.Together, these alternative data points provide: In each case, the quality of location data is of the essence, as it needs to inform hedge fund manager's trade decisions based on correct points of interest, tickers, and stable panels. measuring increased activity at oil wells, or around supply chain hubs. Some developing scenarios in the hedge fund space are more related to industry intelligence insights: e.g. Location data also complements other alternative data sources, such as credit card transaction data, and helps hedge fund firms understand geo-distribution of customers Location data allows hedge funds and quant service providers on the Bloomberg Data Marketplace to analyze trends alternative data to identify trends in consumer behavior and foot traffic ahead of quarterly results announcements and after key campaigns. Why do hedge funds use location as an alternative data source? Competitive intelligence gathering and assessment (check out ).Optimizing office/retail leasing strategy (check out our Site Performance solution) and.Retail property acquisition and development (check out our Site Selection solution).Some of the more common scenarios where hedge funds rely on geolocation data from Unacast include: Assessing sector and competitor performance.Leveraging property-level insights to build more specific insurance risk assessments and.Conducting trade area analysis for new investment opportunities.Evaluating and managing real estate asset portfolios based on migration patterns.Modeling consumer behavior and forecasting future financial performance based on foot traffic and POI data.By making Unacast available via the Bloomberg Enterprise Access Point, we provide hedge fund managers with geo-spatial points of interest and foot traffic metrics that are ready to be ingested into existing models to complement traditional data and inform decision-making in a range of scenarios, including: Like a lot of alternative data, High-quality location data is valuable alpha for hedge funds and other financial institutions that invest in real estate and retail. Location data now does the same automatically, with more sophistication, on a larger scale, and in real time. Until then, they would send someone to a big box retailer to count the number of visitors coming in and out, or count the number of cars parked, and make predictions based on this information. Hedge funds identified the value of location data a few years ago.
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