Saturday, 28 March 2015
Last updated 23 hours ago
May 29 2012 | 9:06am ET
The world's first Twitter-based hedge fund has tweeted its last—and quietly, at that.
Derwent Capital Markets shut its much-ballyhooed $100 million hedge fund after just one month last year. The London-based firm said its proprietary trading model analysed the use of "calm" words on the social networking system to predict movements in the Dow Jones Industrial Average, with 87.6% accuracy.
But in spite of the hype that surrounded the fund's launch, and its 1.85% return in its only month last summer, one of Derwent's largest investors suggested, perhaps appropriately, that the social network-based trading system would be appropriate for crowd sourcing. So Derwent has changed gears, deciding to offer its trading signals to day traders.
"The information we are using is from the mass market anyway," CEO Paul Hawtin told the Financial Times. "In return, we're saying to these people, 'You can use these signals yourself.'"
The new system will overlay Derwent's Twitter-based measurements on IG Group's spread trading platform. Hawtin said he hopes to get between 3,000 and 5,000 customers, with Derwent paid a portion of IG's fees.
"As a result" of the investor's suggestion, "we made the strategic decision to close the Derwent Absolute Return Fund and invest directly in developing an online trading platform," Hawtin said.
"The problem with hedge funds is that it is a very difficult product to market and there's a very small clientele who can even know about it, let alone use it."
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…