(Bloomberg) It was big data’s big moment. The most unfathomable U.S. presidential race in memory gave Predata, a startup firm backed by hedge fund manager Kyle Bass, a chance to cut through the vitriol and coolly calculate the winner by monitoring chat data. The bad call is a reminder of the pitfalls hedge funds face as they try to profit from a world awash in data.
After years of sluggish returns, firms seeking fresh ideas are joining the data revolution, tapping the torrent of social media, satellite and personal information already used by airlines to forecast ticket sales and health experts to track illnesses. But so far few managers have mastered the art of spotting clear trading signals buried in all the noise.
