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Speed and position measurements of rotating shafts are very important in the field of mechanical engineering. In automotive applications, magnetic field sensors for such measurements (camshaft, crankshaft, anti-lock braking system, windshield wiper, etc.) have the largest market share of all sensor types. Camshaft applications are challenging due to their requirements on high angular accuracy under harsh environmental conditions. Due to mounting and packaging tolerances, the magnetic field at the sensors position varies, resulting in angular measurement errors for sensor concepts in use today. Mounting and packaging tolerances cannot be avoided; however, they can be compensated by a new filter structure which is described in this paper. The decision feedback equalizer (DFE) - known from digital communication - was analyzed and modified for the use in angular measurement applications. A new filter structure, using data prediction and an adaptive algorithm based on a physical model, is proposed. This filter calculates and compensates angular errors caused by mounting and packaging tolerances.