Quants say big data is all buzz, no alpha

Efforts to extract alpha from alternative data have been “really unsuccessful”, says Domeyard’s Qi

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Quants have poured resources into alt data, for little reward

Quants are still struggling to extract alpha from big and alternative datasets, despite heavy investment in data science.  

“How much alpha can we actually make? The answer is, today, not a lot,” said Christine Qi, co-founder and partner at Domeyard, a quant hedge fund specialising in high-frequency strategies.

The problem, according to Michelle McCloskey, president of Man Group, is noisy data. “There’s a tremendous amount of data being utilised in a number of ways and a lot of that data ends

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