Definition
Information Edge
A competitive advantage derived from possessing superior knowledge or insights compared to other market participants.
An information edge exists when an investor has access to better, faster, or more comprehensive information than the broader market. In efficient markets, generating alpha requires some form of edge—whether informational, analytical, or behavioral. Primary research through expert networks is a primary method for developing information edges, as it provides unique insights not available in public filings or sell-side research. The value of an information edge depends on its exclusivity, accuracy, and the investor's ability to act on it before others.