Founded by a group of Princeton University engineers, alternative data provider PreData parses open source data and generates indicators of geopolitical risk that could help hedge fund traders and risk managers make better-informed decisions.

PreData’s machine learning algorithms monitor social media feeds and web metadata that not only quantify political, economic, and security trends, it also helps users anticipate them as well.

Here is an excerpt from a report published in Futures Magazine:

Investors have different goals. A few of the use cases are for PreData alternative data is to describe and anticipate, security, political, and financial trends. The primary use case for PreData is monitoring global geopolitical risks. Very useful alternative data for Global Macro traders. We think it works best in combination with other global macro factors.

PreData alerts investment managers early by using metadata and not NLP to data-mine. According to research, statistics on metadata browsing patterns lead news reporting and Google Trends and other alternative data web scrapers.

The goal is to identify outliers and opportunities before other investors. There are many ways to combine and create indexes with PreData. PreData provides the indexes and signals to use in quant factor models.