Gaining an Edge, the Inflection Point, and Table Stakes

October 26, 2021

When new sources of quality 'alternative' data become available, first-movers gain from it - this 'edge' can be alpha or other wins according to use-case.

Early-adopters win by being ahead of the curve, with access to the newer, better data while it's still rare and relatively uncommon.

Early on, having this data ahead of your peers gives an advantage. You are ahead if you have it.

Over time however ... the data becomes more widely used ...

More companies trial it, more companies buy and use it - the data is now more easily available and more commonly used.

Now there is 'alpha decay' (for the more alpha-generating datasets) and the 'edge' that was there initially, is diminishing.

Finally the value proposition is changing: not having this data is a disadvantage. Not having it now means falling behind.

So there's a natural inflection point where the dial passes midday. No longer an ace card, this is now just 'table stakes': required just to stay in the game. 

The timing of this inflection point will differ for specific use-cases - and it's hard to predict ahead of time.

We believe Woodseer is now approaching this inflection point for some (tho not all) of our multiple use cases

Specifically our clients tell us Woodseer's dividend forecast data gives them:

  1. Stronger stability of forecast accuracy 6-12 months out
  2. Stronger ex-div date forecasts for options expiry analysis
  3. Stronger accuracy across our wider coverage (beyond the mainstream ~10k names)

Are you confident you're keeping up with your peers?

How much does 5% improved forecasting accuracy impact your numbers?

How much would being 5% behind cost you?

To start exploring these and other questions get in touch now - we are at your service.