New Macro Strategy Firm Partners With Big Data Firm Predata

Nightberg, a New York-based macro strategy research firm, has partnered with big data firm Predata to incorporate policy research into their offerings.

Nightberg, founded last year by two macro hedge fund strategists, analyzes Predata’s political volatility indices, which are rules-based measures of a country’s political volatility generated by monitoring multiple digital conversations taking place in the host country’s language(s) from a wide cross-section of collaborative and social media sources.

The analysis is incorporated in Nightberg’s 25-page country reports which are currently produced on a bi-weekly basis, but moving to a weekly frequency.  The reports cover economic, policy, political, and fund-flow dynamics in countries across the G10 and EM space.  In return, Nightberg allows Predata to distribute the country reports to its subscribers.

Predata is a big data research firm that uses social media to predict geopolitical risk which recently secured $3.25 million in a venture funding round led by Edison Partners.

Nightberg also produces a weekly “Sunday Observer” which provides thematic commentary on the global investment landscape, as well as analysis of fund-flows and a dashboard of price action across multi-asset classes.

Both Nightberg founders have hedge fund backgrounds: Birgir Haraldsson worked at macro hedge fund Caxton Associates while Mario Manna was a trader at Moore Capital and Bridgewater.  The pair met at Jefferies and decided to start their own macro boutique in September of last year.

Haraldsson, who hails from Iceland, typically develops the broader themes while Brooklyn-born Manna is more tactical and market oriented.  Their goal is to generate three to five big ideas each year.

The co-founders have drawn on their macro hedge fund roots for clients, but are also attracting family offices, asset managers, Fortune 500 corporations, and government agencies.  The subscription cost of $12,000 per year is designed to appeal to a broad base of clients.

Nightberg is planning to incorporate other alternative data sources relating to world trade nowcasting into its product.

Our Take

Nightberg’s relationship with Predata is a creative example of a partnership.  The deal yields Nightberg unique content and exposure to Predata’s client base.  Predata gets analytic content without having to hire analysts (and exposure to Nightberg’s client base).