Better-Than-Expected Fundraising Delays Twitter Fund Debut

Apr 8 2011 | 12:09pm ET

Here’s a problem most hedge fund managers would love to have: a fund that plans to use Twitter feeds has had to delay its debut because it’s raised too much money.

IR Web Report says the London-based fund created by brothers Paul and Simon Hawtin has raised almost $100 million—that’s about $60 million more than the brothers had expected to have for their April 1 launch. As a result, the launch has been delayed while the fund is restructured to accommodate more investors.

This is the second delay for Derwent Capital Markets, the Hawtins’ firm, which had initially intended to launch the fund in February 2011, but had to postpone while it ramped up its operation to cope with greater-than-expected investor interest.

Derwent claims the use of “calm” motional words on Twitter, properly analyzed, lets the firm predict where the Dow Jones Industrial Average is going in the next two to six days with a remarkable 87.6% accuracy.

The Hawtins hope to earn 15% to 20% returns.


In Depth

Delayed Flash Crash Arrest Highlights Difficulties Detecting Fraud

Apr 23 2015 | 7:19am ET

The five years it took regulators to bring high-profile charges against a UK trader...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Opportunities Ahead: Asian Fixed Income and Currency Markets

Apr 24 2015 | 6:18am ET

For hedge funds focusing on Asia, the policy uncertainty, unclear interest rate...

 

Editor's Note