From the Field

Analyst Spotlight: Media & Telecommunications

The Power of Alternative Data in Company Analysis

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Chris Graff:

One vector that has been really interesting is the use of alternate data. Alternative data is consumer panels, credit card panels. It is foot traffic, it's the back to the internet-enabled businesses. There's just an exhaust of data that exists today that wasn't used 10, 15 years ago to better pick stocks. Today, that is really important, and that is core and central to my process. Most in the market use alternative data to call quarters to be very tactical near term. But the reality is that it’s almost par for course today. I use alternative data to prove out the actual thesis, the unit economics and ultimately the long-term earnings power of this business. Again, at T. Rowe Price we have a duration advantage. It's one of the only competitive advantages that still exists in active management. And so that has evolved really nicely over time of building, again, this intersection of classic identification of good businesses that can compound over a great period of time, but then being even more rooted in the core analysis around alternative data contribution and then using it to find real spread between the rest of the market and trying to be differentiated.

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