Making Sense

Trading Insights: Data vs. model – what’s more important?

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Apr 25, 2025
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INSIGHT

Data Foundation is Critical

  • Data is more important than models because it forms the foundation of investing decisions.
  • Proper normalization and thoughtful processing of diverse data sets yield powerful predictive insights.
INSIGHT

Data Breadth Builds Edge

  • A diverse range of data sources collectively creates a robust edge in investing.
  • The creation and normalization of data sets can itself be a source of alpha.
INSIGHT

Know Your Data's Edge

  • Having an underlying reason for a data signal's existence is crucial for robustness.
  • Proprietary data and extensive analysis raise barriers to entry and add investment edge.
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