Big data gives investors a big edge in fast markets

Investment Reporter for the Globe and Mail – INSIDE THE MARKET

About a year ago, Toronto-based hedge fund manager Eric Jackson picked up on a huge spike in demand for Zoom Video Communications Inc. by users in China.

The city of Wuhan had just come off its first weekend under a sweeping lockdown designed to contain the spread of a deadly new pathogen. With millions forced to isolate and work from home, daily downloads of the Zoom app quintupled overnight.

Already a Zoom shareholder, Mr. Jackson promptly doubled his stake in the video-conferencing service.

Within a few months, working from home became a way of life in much of the world, elevating Zoom to household-name status. By the end of 2020, its stock was up by roughly 400 per cent on the year.

Getting in early on one of the pandemic’s big winners did wonders for Mr. Jackson’s returns – the long-short fund at EMJ Capital Ltd. gained 163 per cent last year.

“I’m trying to uncover the factors that are early indicators that a company is really going to take off, not whether they’re going to beat or miss earnings next quarter,” Mr. Jackson said. “I try to find them before they’re household names.”

Continue reading the Globe and Mail Article: Big data gives investors a big edge in fast markets. by Tim Shufelt.