Key Takeaways
- • Exabel's 2026 survey finds 94% of hedge funds, asset managers, and pension funds expect to increase alternative data spending in 2026, with 18% anticipating a substantial rise.
- • Firms managing around $2.4tn in assets across the US, UK, Hong Kong, and Singapore were surveyed for the Alternative Data Buy-side Insights & Trends 2026 report.
- • 54% of firms say alternative data budgets grew 50% or more over the past two years, and 5% reported budgets more than doubled.
- • 84% of firms allocate between $500,000 and $2.5m annually to alternative datasets, while 4% spend above $2.5m.
- • Around 58% of respondents say senior leadership is "very committed" to alternative data, with the remaining 42% describing commitment as "quite strong."
Summary
Hedge funds, asset managers, and pension funds plan to increase alternative data spending this year, driven by growing demand and strong backing from senior management, according to new research from Exabel, an alternative data insights and analytics platform.
The global survey, conducted across the US, UK, Hong Kong, and Singapore with senior staff at firms managing around $2.4tn in assets, found that 94% of respondents expect to increase alternative data spending in 2026. Nearly one in five (18%) anticipate a substantial rise. The findings extend a period of sustained growth: more than half (54%) of firms said their budgets for purchasing and managing alternative data have grown by 50% or more over the past two years, and 5% reported budgets have more than doubled. Every surveyed firm indicated some level of spending increase over that period.
Senior management support is also high. Around 58% of respondents said their senior leaders are "very committed" to using alternative data, while the remaining 42% described their commitment as "quite strong," per the Exabel report.
Most firms (84%) currently allocate between $500,000 and $2.5m annually to alternative datasets, and 4% spend above $2.5m. These budgets cover data management, staffing, and dataset acquisition.
Tim Harrington, CEO of BattleFin and Exabel, said: "Budgets for alternative data are set to rise this year, and senior management commitment to using these insights in investment research is high. Most firms are investing meaningful—but disciplined—amounts, generally between $500,000 and $2.5m annually."
The global survey, conducted across the US, UK, Hong Kong, and Singapore with senior staff at firms managing around $2.4tn in assets, found that 94% of respondents expect to increase alternative data spending in 2026. Nearly one in five (18%) anticipate a substantial rise. The findings extend a period of sustained growth: more than half (54%) of firms said their budgets for purchasing and managing alternative data have grown by 50% or more over the past two years, and 5% reported budgets have more than doubled. Every surveyed firm indicated some level of spending increase over that period.
Senior management support is also high. Around 58% of respondents said their senior leaders are "very committed" to using alternative data, while the remaining 42% described their commitment as "quite strong," per the Exabel report.
Most firms (84%) currently allocate between $500,000 and $2.5m annually to alternative datasets, and 4% spend above $2.5m. These budgets cover data management, staffing, and dataset acquisition.
Tim Harrington, CEO of BattleFin and Exabel, said: "Budgets for alternative data are set to rise this year, and senior management commitment to using these insights in investment research is high. Most firms are investing meaningful—but disciplined—amounts, generally between $500,000 and $2.5m annually."
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