Lombard Odier Investment Managers (LOIM) has extended its DataEdge strategy to external investors alongside making it available in a UCITS format.
The firm said in a statement on its website that the strategy, launched three years ago, uses big data analysis to identify trends in consumer behaviour and their impact on company earnings forecasts.
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Jean-Pascal Porcherot, co-head of LOIM and managing partner at Lombard Odier, said: “The DataEdge strategy is an important addition to LOIM’s range of hedge fund strategies. It highlights the depth of skill and expertise across our systematic offering, as we continue to seek to new ways to generate alpha across asset classes.”
He added: “With the DataEdge strategy, we are combining tested, disciplined investment processes with new data sources to offer investors a differentiated market-neutral strategy and compelling potential returns.”
According to LOIM, the strategy relies on the analysis of alternative data points across multiple geographies, sectors and sources, including credit card transactions, digital receipts, web traffic, activity on apps, and geolocation services. This data is structured and filtered to identify consumer behaviour trends in real time.
LOIM said that systematic and quantitative analysis methods are then applied to predict how patterns could impact the key performance indicators (KPIs) of listed companies, such as sales, revenues and new customers, as well as to track inflection points in the trends of KPIs over several quarters.
The DataEdge strategy is managed by co-lead portfolio managers Laurent Joué and Marc Pellaud, who have a combined 36 years of experience in systematic alternatives strategies. The pair work closely with LOIM’s quantitative investment team of twenty-one professionals, which together manages more than $10bn.
The firm said: “We continue to seek to new ways to generate alpha across asset classes. With the DataEdge strategy, we are combining tested, disciplined investment processes with new data sources to offer investors a differentiated market-neutral strategy and compelling potential returns.”
