How is alternative data different from traditional research?

Traditional research uses public filings, broker research, company disclosure. Alt-data uses sources outside that traditional flow — typically derived from observable behaviour rather than self-reported information.

Is alternative data legal?

Generally yes when collected through legitimate channels. Reputable providers address privacy, MNPI and regulatory exposure explicitly. Buyer compliance teams typically vet alt-data vendors before procurement.

How much does an alt-data programme cost institutionally?

Mid-market hedge funds typically run alt-data budgets in the high six figures to low seven figures annually. Larger institutional clients spend materially more across diversified vendor sets.

Alternative Data

Alternative data is non-traditional information used in investment research — distinct from public filings, sell-side research and traditional company-provided disclosure. Common forms: web-scraped data, satellite imagery, credit-card transaction panels, expert calls, app-usage data and channel-check data.

Term: Alternative Data
Section: Glossary
Last refreshed: Q1 2026

01/In Depth3–5 paragraphs

Alternative data emerged as an institutional investment-research category in the 2010s as hedge funds sought edges beyond traditional sources. Expert-network calls are one form of alternative data; specialist data vendors provide many others.

Within alternative data, expert-network insight is the qualitative end of the spectrum. Other alt-data categories are heavily quantitative — credit-card spend panels, app-usage analytics, web-scraping outputs, satellite imagery of physical activity.

Quality and compliance vary materially across alt-data providers. Reputable providers document their data-collection methodology, address privacy and regulatory exposure, and price transparently. Lower-quality providers (especially in scraping-based products) can introduce regulatory and reputational risk.

Most institutional hedge funds blend several alt-data categories with traditional research. Expert-network spend is typically the most visible single line in alt-data budgets; quantitative alt-data subscriptions are individually smaller but add to a sizeable aggregate.

02/Examples4 concrete cases

+A hedge fund using credit-card transaction-panel data alongside expert calls to track retailer performance
+An equity research team using satellite imagery of factory activity as a leading indicator
+A PE firm using app-usage data to validate user-engagement claims in target diligence
+A buy-side analyst commissioning 8 expert calls (qualitative alt-data) to interpret quantitative signal

03/Frequently Asked3 questions

Q.01
Q.02
Q.03

04/See AlsoWhere this applies

04.1

EXPERT CONSULTATIONS

One-hour calls with vetted operators, executives and specialists across 50,000+ professionals. Scheduled in 3 to 5 business days. From €500.

04.2

INVESTMENT THESIS VALIDATION

Test the assumptions underlying your investment thesis before you commit capital.

05/Related Terms3 suggestions

PRIMARY RESEARCH

Primary research is original data collected directly from sources — operators, customers, channel partners, ex-employ…

EXPERT NETWORK

An expert network is a marketplace that connects buyers (investment funds, corporates, consulting firms) with vetted …

CHANNEL CHECK

A channel check is a structured primary-research interview with a channel intermediary — distributor, reseller, broke…

← Back to glossary

Need help applying this concept? Tell us the decision.

First quote in 24h. We'll recommend a competitor if we're not the right fit.