Forefront Communications

FINalternatives: Survey — 45% Of Managers Have Lost Money Or Missed Trades Because Of Bad Event Data

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Mark Dowd

Mark Dowd

Nearly half of institutional investors have lost money or missed a trade because of incorrect or incomplete corporate event information, according to a new survey from alternative data provider Wall Street Horizon, with 40% experiencing five-figure losses on single trades.

The survey, which was conducted August 17-23, polled more than 100 institutional market participants, nearly two-thirds of which were quantitative or discretionary fund managers, Wall Street Horizon said in a statement.

Key findings from the survey included the following:

  • 45% of respondents reported losses or missed a trading opportunity due to an incorrect event date. 40% of those who lost money said the loss was in excess of $10,000 on a single trade; multiple respondents reported losses exceeding $1 million.
  • An overwhelming majority of respondents would like to know when an event changes – both for alerting and back-testing purposes. Currently no event data vendors provide this capability for tracked events beyond earnings. An equal number of respondents (40% each) indicated they want event change notifications for competitive monitoring purposes and for tracking companies they care about.
  • Speed is not a significant challenge when it comes to event data tracking. Instead, the vast majority of the poll’s respondents noted difficulty in finding data (42%) or inaccurate data (38%) as their primary struggles.
  • Only 12% of respondents believe that the event data they consume is “very accurate,” while 54% believe their event provider’s data is “somewhat accurate.”
  • Earnings release dates remain the event type utilized by most respondents, at 82%, but investor conference dates (65%), buyback dates (52%), dividend payment dates (52%) and shareholder meetings (36%) are growing in importance.

Read the full article here.

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