At times investing can seem like gambling. You go to the racetrack, buy your program and then pour over the data in the program to pick a winner. You ask yourself, what are the track conditions? Which horses have won the most on those track conditions? Which jockeys are on a winning streak? Is there a surprise long shot lurking in the data?
Now imagine that instead of a racetrack, you are an investor on Wall Street. You are faced with the same myriad list of questions, but instead of a simple race program, you have a billion points of data. What can you do to find the winners? And how can you create an advantage when everyone else has the exact same data and tools?
Financial information gives the investment firms that pursue the stock market, an edge in the marketplace. But pursuing it is becoming more expensive and more demanding. The number of data sets and subscriptions required to be competitive is growing, and any data that helps earn greater returns will eventually become standard as other investors find and incorporate it.
This conversation between Keith Ackerman and Eric Christiansen at the O'Reilly Money:Tech conference gives insights on generating an early advantage using financial information. The conversation takes place between one of the biggest information consumers (Barclays) and producers (Thomson).
Keith Ackerman is Global Head of Next Generation Research for Thomson Financial and a recognized expert in global information services content, data and electronic transactions. At Thomson Financial, Mr. Ackerman has a variety of leadership roles and responsibilities including the Thomson Financial Primary Research business, managing the Global Contributor Team, and he is a member of the management team for Thomson Financial’s Investment Management business.
Eric Christiansen is Data Strategy Officer for the Global Advanced Active group of Barclays Global Investors. He has been working with financial data as reference data and as fuel for large institutional quantitative investment strategies for more than 15 year. Eric supported the transformation of one of the world’s largest index managers to a firm that is now also one of the worlds largest active fund managers. Eric is responsible for maintaining a data strategy that gives Barclays Global Investors researchers and fund managers a competitive edge in the never ending quest to beat the market. Eric has front line experience working with market data, fundamental data, analyst data and economic data from scores of data vendors.
This free podcast is from our Money:Tech series.