Hedge funds require data that will explain the prices

Smart money is stunned.

The most sophisticated investors in the world, members of the level of hedge funds of $ 4.5 billion, constantly travel the globe for new data in order to better clarify their commercial decisions and improve their models. But the pricing policies of President Donald Trump, who sent global markets in shock on Thursday, make them rush to find relevant information to help them understand how devastating policies could be devastating for the global economy.

Data exchanges and consultants have told Business Insider that interest in data at the country level had skyrocketed. As a general rule, companies are interested in data sets that can tell a story about a specific action or sector, such as credit card data on Amazon or electronic commerce, but due to the widespread impact of prices, hedge funds specialized in various strategies – macro players, fundamental stocks, quantitative traders and more – are all looking for these insistent data.

Matt Ober, a former data buyer for hedge funds such as the third point in Dan Loeb and World, which manages the initial data market offer, said that the interest in these data sets has “doubled or tripled” in recent weeks.

Daryl Smith, the chief research manager for the alternative data consulting firm Neudata, said that the demand for specific data in Canada has skyrocketed due to the trade war between the country and the United States. Because prices will have an impact on consumers around the world, not just those of the United States, Smith said that funds were also looking for ways to follow the habits of international buyers and how they could change.

“Previously, the vast majority of consumer spending issues focus on the United States, but now people want these high-level data on all countries,” he said.

The problem, however, is that this data is not something that many suppliers have ever sold before, mainly because there was not enough interest in understanding the spending of the Vietnamese consumer or average Canadian. It is a reminder at the Gamesop saga of the beginning of 2021 when funds rushed to follow the tickers mentioned by retail investors in the bets of Wall Street Soubits who have gathered and bought enough Gamescop parts to put a brief pressure on Melvin Capital of Gabe Plotkin.

Sixteen months, several documentaries and an investigation by Congress later, Melvin closed.

Compared to memes mania, prices set a wider challenge for eager data funds. A scientist in a large fund has said that companies already revive the existing data of credit card revenue to obtain more specific prospects in the country. Ober mentioned the seller Dun & Bradstreet as a potential winner due to the company’s supply chain and manufacturing data.

But whoever rushing towards space saying that he has the perfect product for current exaggerated volatility, said another data buyer from a fund. Funds need data sets with years of balance sheet for backtest and prove their legitimacy.

The unprecedented nature of prices means that a legitimate assessment will be difficult to find.

“Unless someone has data on global trade in the 1920s, there will be no miracle solution,” said the data buyer, referring to the last time that an American administration has slapped such serious prices on its global trade partners.