How we helped a hedge fund create a new alternative data source

Problem

We worked with a value-focused hedge fund looking at an investment in an event management e-commerce platform. The company had recently undertaken an acquisition of a smaller competitor with a fiercely loyal customer base.

Challenge

The fund wanted to quantify the impact of the acquisition on retention of the target’s customers. Additionally, they wanted to build a granular view of the acquiree’s customer base and revenue trajectory.

There wasn’t a way to measure customer loyalty and revenues directly, so we identified and constructed proxy measures that were strongly correlated to what the fund wanted to learn.

Solution

We conducted a multi-month semi-automated data harvesting exercise to compile the relevant data. Finally, we created an interactive dashboard so the team could monitor the performance of the company over time.

Outcome

The fund used our work to inform meetings with the company’s senior management and is currently analyzing the opportunity using our analysis.