Investors Are Increasingly Using Sophisticated Data to Inform Trading Decisions

Posted on Sep 6 2018
Type Blog

Jefferies hosted its Investor Relations Summit in Chicago last week, where our very own COO Jonathan Kanarek spoke about how investors are utilizing advanced data to make investment decisions. The event drew a crowd of investors and corporate executives from public and private companies to collaborate on investment strategy and share ideas.

When leveraged effectively, certain alternative data sets provide a competitive edge in an increasingly saturated market and allow investors to gauge a company’s performance without relying solely on analyst forecasts, SEC filings, quarterly earnings and other financial statements. BuildFax data is frequently utilized for competitive market research, market sizing and distribution analysis. Investors often use BuildFax insights in investment decision-making and, more importantly, to reduce overarching business risk.

In recent years, value-driving data sets have been primarily relevant for buy-side professionals including hedge funds and other alternative investors as a tool for research. This approach generally involved collecting large swaths of data without systematically incorporating it into the investment process. However, Kanarek highlighted how the use of alternative data has since become a more sophisticated endeavor, one that harnesses data insights to reduce portfolio-wide risk and hone in on key macro- and micro-economic indicators that inform trading decisions.

BuildFax data offers investment professionals unique insights into real estate—the largest asset class—valued at more than $50 trillion and brings ease to the investment process:

  • The BuildFax Housing Health Report—which presents three major economic indicators for the U.S. housing market—delivers a more comprehensive assessment of the housing market prior to the release of the U.S. Census Bureau housing report.
  • Our property history and condition insights are also closely aligned with other housing health indicators including retail construction materials sales and remodel project spend.
  • As General Data Protection Regulations (GDPR) influences the U.S. regulatory environment, a concern shared across the finance sector, investors are looking to data like BuildFax’s, which delivers a competitive advantage without incorporating personally identifiable information.

BuildFax’s database of more than 23 billion property history and condition insights takes the guesswork out of residential and commercial structure changes over time and delivers detailed insights on the health of the housing market. For more information on how BuildFax insights can help elevate your investment strategy, contact us today.

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