According to Business Insider, a software company called Amenity Analytics (AA) reviews earnings call transcripts, press releases, company research and more to try and help hedge funds spend less time looking for important nuggets of information and more time trading. Now they have turned their attention toward truth-telling by CEOs.
1. What type of techniques does Amenity Analytics use?
2. How does AA’s deception tracker work?
3. If you were talking to someone about this article, how would you define “alternative data”?
4. How much money does AlternativeData.org expect hedge fund managers will spend on alternative data by 2020?
5. Is AA expected to replace widely used data providers like Bloomberg or Thomson Reuters?
Saacks, B. (2019). A growing alternative data company helps hedge funds determine if CEOs are lying using CIA interrogation techniques. Business Insider, January 28 (Retrievable online at https://www.businessinsider.com/alternative-data-company-cia-interrogation-to-determine-which-ceos-are-lying-2019-1)