Trends in alt data: What managers should expect in 2020

Throughout the fund industry, alternative data is increasingly becoming a vital supplement to fundamental research.

A recent Lowenstein Sandler survey^[1] finds that more than four out of five funds of all sizes are using alternative data in some capacity, and even those who are not using it indicate that they are thinking about using it in the near future.

The survey also finds growing concerns about how the rise of alternative data might affect fund managers. That is partly because competition among funds is intense as clients increasingly want alternative data to become part of the traditional diligence and valuation processes.