Tuesday, 30 September 2014
Last updated 1 min ago
May 18 2011 | 11:35am ET
Derwent Capital Markets, which uses Twitter feeds to help determine its investments, has finally launched after a series of delays.
The fund debuted on Monday with US$100 million, London-based Derwent said. The fund was originally supposed to launch in February, and then again in April, but was delayed both times by greater-than-expected investor interest.
Derwent will use a proprietary trading model that analyzes the use of "calm" words on Twitter to predict movements in the Dow Jones Industrial Average. The fund will invest in liquid equities and equity indices; Derwent has previously claimed that its model is 87.6% accurate.
The firm said it is targeting returns of between 15% and 20%.
"For years, investors have widely accepted that financial markets are driven by fear and greed, but we're never before had the technology or data to be able to quantify human emotion," firm founder and fund manager Paul Hawtin said. "This is the fourth dimension."
Dale Gabbert, of law firm Reed Smith, which advised Derwent on the launch, added, "social media is not just changing the way we live, it is now also changing the way we invest."
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...