As interfaces move to AI platforms, I was trying to figure out which market data providers have the most proprietary value. I think this may be part of the challenge they are facing.
MSCI = Benchmark/risk models
LSEG = Exchange, RT
S&P = Ratings, Benchmark
Moodys = ratings
Morningtar = stars
BBG = FI content
FactSet = cusip
Besides cusip, is there a proprietary data/analytics set that Factset provides in this new world.
Honestly, the business strategy changes every five minutes. Senior management has no clue what they’re doing and half of them got hired with zero relevant experience. The marketing team, mostly white women acting like they’re on some reality show, gossiping all day instead of actually working.
Almost impossible to replace. It‘s tied into SEC and other compliance processes across firms. The number may be easy to create. But it would be impossible to replace all the legacy systems that use it to connect. Brilliant move by factset buying it. Massive cash flow with little cost.
FactSet's key IP = CUSIP = a proprietary version of something that any off the shelf database or blockchain can issue on the fly without the outrageous overhead.
@ev The new CEO has his work cut out on several fronts apart from the AI strategy.
FactSet opened up itself via APIs lending itself as a data provider rather than a workstation itself. The other major benefit is the data concordance that enables FDS to seamlessly stitch through datasets.
However, it has quickly run into the issue of being too “open” and “geeky” where only the sophisticated tech well versed clients are able to keep up. It’s also not been prudent in how to monetise the output of this data - what is a cash cow of the future has been given away at cheap valuations and been a source of contention due to questions around data integrity.
FactSet has potential, it’s marred by poor strategy and execution which I’d say should be in the CEO’s top 3 priorities.
I was going to say anxiety :-P
Thank you. And interesting. Based upon where ai is, that will be how firms like factset will be valued. Not on their tech or even apps. Looks like interesting assets to value. I assume that’s where new ceo will focus along with hc planning.
@a9 There are a few - FactSet’s claim to fame in analytics is it’s Multi Asset Class Risk model. Similarly, its acquisition of Revere got it some interesting data on geographic revenue exposures. This was also true of some of its other acquisitions like Cabot and Truvalue Labs - most are quite poorly integrated/ botched up.
I don’t Just interested
Must not work here if you don’t know