Lombard Odier Investment Managers has opened its DataEdge strategy, a market-neutral alternatives product, to external investors and through a UCITS format.
DataEdge, which originally launched three years ago, looks for trends in consumer behaviour and the impact on earnings forecasts through data to choose holdings. Data points used in the strategy include credit card transactions, app activity, digital receipts, and geolocation to determine trends. These findings are then used to predict patterns such as sales and revenue across companies.
In total, the portfolio holds between 200 to 250 stocks and monitors near 700, focusing on small to mid-cap companies in the US. The strategy is managed by co-lead portfolio managers Laurent Joué and Marc Pellaud.
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.
“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.”
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