In defence of hedge-fund data mining

People tend to get worked up about the idea of Wall Street mining the trails of data we all leave on the internet for investment ideas.

The first and most obvious reason is that privacy issues are always contentious. You’d think it’d be a windfall for hedge funds if MasterCard or Visa started selling them data on trends in customer purchases (while the card providers sell some data, hedge funds haven’t cracked that yet, as far as we know). While the information obtained in data-mining isn’t supposed to be traceable to individuals, how would a company fully scrub that of any signs of consumers’ identities?

Continue reading: In defence of hedge-fund data mining

People tend to get worked up about the idea of Wall Street mining the trails of data we all leave on the internet for investment ideas.

The first and most obvious reason is that privacy issues are always contentious. You’d think it’d be a windfall for hedge funds if MasterCard or Visa started selling them data on trends in customer purchases (while the card providers sell some data, hedge funds haven’t cracked that yet, as far as we know). While the information obtained in data-mining isn’t supposed to be traceable to individuals, how would a company fully scrub that of any signs of consumers’ identities?

Continue reading: In defence of hedge-fund data mining