Look beyond data for human biases to gain an edge in the market

HOW can you gain an edge? The question has confounded investors almost forever. Many fixate on data, believing they can mine magical statistical relationships. Quantitative fund managers run vast sums this way, from Shenton Way to Wall Street. They are not alone. Belief in data's dominance abounds.

But this belief has one huge flaw: Data has become commoditised. Smartphones harness almost endless data. Professionals consider parallel statistics. Like many schools globally, Singapore Management University offers a Master's programme in Quantitative Finance. Anyone can crunch the numbers. And anything that can be done by anyone holds no investing edge. Today, you must look beyond data - seeking truths that data devotees shun. Let me explain.

When I was young, information was scarce - hence, precious. Morning newspapers brought yesterday's news. Magazines came weekly or monthly - older news. Deeper analysis often required library trips diving into musty archives, and in-person interviews.