Case Study

Deep and custom expertise to rise above the noise of market volatility

  • Public Equity
  • Global

When the Facebook-Cambridge Analytica data scandal was reported in early 2018, it became a watershed moment in widespread understanding of personal data. The fallout echoed through the investment community, as Facebook’s stock plummeted and calls for tighter regulation of tech companies’ use of personal data created uncertainty in the market over other technology stocks. The pressure was on equity funds to determine the best strategy for investments in companies harvesting large amounts of data. Questions about the implications of this scandal came to the fore, including who would be the market’s winners and losers, and clients turned to Third Bridge to increase their understanding and conviction.

Third Bridge's ability to understand the nuances and find the relevant experts who could connect the dots on a volatile and fast-moving issue gave us the conviction we needed to develop an investment strategy

Analyst, North American Equity Fund

Research Insight

Third Bridge’s deep research team moved quickly to gauge the situation and understand the nuances important to equity fund clients, sourcing experts who could speak to the impact the data scandal could have on existing holdings while identifying who would potentially emerge as the winners and losers in the aftermath.

Third Bridge sourced custom experts – including former security and technology executives with Facebook and Cambridge Analytica – for multiple clients, helping them to fully understand the details of what occurred and impact to other companies in related sectors. The experts were able to clarify complex occurrences, implications for users and address how changes in privacy controls could impact future advertising revenues.

Outcome

Given the high stakes and volatility of the situation (Facebook’s stock plummeted after the revelations in late Q1 2018, then rebounded for a promising Q2, then suffered the largest one-day drop in market history in Q3), Third Bridge was able to quickly provide the bespoke experts that could arm our clients with the insights needed to understand the extent of the damage and the likelihood of a recovery above and beyond the limited and short-term views of sell-side research.