Chasing Alpha

How Data and Analytics Can Help Alternatives Outperform the Pack

February 2014

Today’s investment environment is putting pressure on alternative asset managers.

As leading managers look to satisfy growing investor and regulator demands, boost performance, and manage risk more effectively, advanced data and analytics strategies will be critical.

Institutional investors are increasing their allocations to alternatives to drive up investment returns. To attract this capital, alternative asset managers need advanced data systems that offer the transparency in risk and performance that investors demand. At the same time, increased regulations require sophisticated tools to collect and report large volumes of data.

Drawing on a survey of alternative asset managers and other institutional investors conducted by the Economist Intelligence Unit, this report reveals how leading industry players can develop more advanced data and analytics systems to achieve a competitive advantage and sustain their future growth.

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About the Research

State Street commissioned the Economist Intelligence Unit to survey more than 400 asset owners and asset managers, to gather insights into how they are using investment data and analytics. The survey, which was conducted from August to September 2013, included 81 alternative asset managers. Among all respondents, roughly one-third were based in North America, one-third in Asia Pacific and one-third in Europe.

Real-time information, increasing shareholder scrutiny, and ever-deepening financial regulation, data and analytics capabilities have become essential to alternative asset managers’ success.