The Cambridge Analytica scandal should serve as a wake-up call to the growing number of investment firms using information provided by third parties to give them an edge, data privacy experts warn. Large investors including Point72 and BlackRock are among the asset managers and hedge funds using alternative data to gain valuable insights into potential investment opportunities. In...
The Cambridge Analytica scandal should serve as an example to fund managers using AI and data from third parties to identify investment opportunities, according to data privacy experts. Data scraping is one practice that is noted as potential problematic under new EU regulations that come into force in May. EU places new obligations on all parties handling data, from advertisers to asset managers, with breaches in the GDPR liable for fines of up to €20m or 4% of annual turnover. Last year, consulting firm Opimas anticipated that hedge fund managers will spend $7bn on alternative data sources by 2020.