Page 8 - DLIS402_INFORMATION_ANALYSIS_AND_REPACKAGING

Unit 1: Information Analysis, Repackaging and Consolidation

information content, and refining information to build portfolios. Information analysis works both Notes
for managers who use a non-quantitative process and for those who use a quantitative investment
process.
The only requirement is that there is a process. Information is a fuzzy concept. Information analysis
begins by transforming information into something concrete: investment portfolios. Then it analyzes
the performance of those portfolios to determine the value of the information. Information analysis
can work with something as simple as an analyst’s buy and sell recommendations. Or it can work
with alpha forecasts for a broad universe of stocks. Information analysis is not concerned with the
intuition or process used to generate stock recommendations, only with the recommendations
themselves.
Information analysis can be precise. It can determine whether information is valuable on the upside,
the downside, or both. It can determine whether information is valuable over short horizons or
long horizons. It can determine whether information is adding value to your investment process.

The science of information analysis began in the 1970s with work by Treynor and
Black [1973], Brealey and Hodges [1973], Ambachtsheer [1974], Rosenberg [1976],
and Ambachtsheer and Farrell [1979].

These authors all investigated the role of active management in investing: its ability to add value
and measures for determining this. Treynor and Black, and Hodges and Brealey, were the first to
examine the role of security analysis and active management within the context of the capital asset
pricing model. They investigated the requirements for active management to outperform the market,
and identify the importance of correlations between return forecasts and outcomes among these
requirements.
Ambachtsheer, alone and with Farrell, provides further insights into the active management process,
specifically, turning information into investments. He coined the term “information coefficient,” or
IC, to describe this correlation between forecasts of residual returns (alphas) and subsequent
realizations. Rosenberg investigates the active management process and measures of its performance,
as part of his analysis of the optimal amount of active management for institutional investors.
This really shows the pioneering work of these authors, but focuses explicitly on the task of
information analysis itself. It presents a unified treatment of information analysis, with both
theoretical discussions and concrete examples.
Literally, Information repackaging is to package the information again, or change from one form to
another. This concept refers to transcript speech, song, chant, prayer, or mantra. It could also mean
to transfer an object into graphs, drawings, poetry, or change media to other media such as paper,
digital, magnetic tape, microfiche, DVD. Repackaging information could be translated from one
language into another, such as translation, interpretation, and could also be the changes in functions
such as revision, summary, analysis, treatises, and even annotation.
Actually, information repackaging is not a new concept for library and information work, and it is
parallel to abstracting and indexing work, selective dissemination of information, bulletins and
current awareness services. They repackage the information to customize the information on user
needs.
Agricultural libraries that serve the agricultural extension, would have to do container information
in the form of booklets or posters such as industrial trees will be more simple and suitable for the
extension agents or farmers. Information needs a professional, or students will vary with the degree
of farmers because they need different information. An annotated bibliography of Cassava (Manihot
esculenta, Manihot Utilisima) will further facilitate an agricultural expert to develop this plant with
annotated bibliography tools to dig deeper into information about cassava.

LOVELY PROFESSIONAL UNIVERSITY 3