Twitter Hedge Fund Firm Returns With Trading Platform

Jan 14 2013 | 2:06am ET

A year-and-a-half after closing its short-lived Twitter-based hedge fund, Derwent Capital Markets is back with an online trading platform.

DCM Dealer launched today, financed by Derwent and technology investor Mark Pearson. Like Derwent's hedge fund, which managed US$100 million for exactly one month before shutting down, DCM will focus on Twitter and other social media networks, including Facebook, to gauge sentiment about companies and other trading opportunities.

Using its proprietary sentiment model, DCM rates stocks, currency pairs and commodities on a scale of zero to 100, with the former indicating very negative sentiment in the Twitterverse and the latter very positive. At first, the platform will feature only 250 British stocks, major foreign exchange pairs and commodity contracts, but it expects to add European stocks in a few weeks and U.S. and Asian stocks next month, Financial News reports.

"Today, social media creates a vast amount of information and it has been proven that the sentiment derived from it can predict stock market movements," Derwent founder Paul Hawtin said. "For the very first time, we are connecting this information source to the trading community, opening up the universe of social media data so traders can make more informed buying and selling decisions."

Derwent's hedge fund made 1.85% in its only month of trading in 2011.


In Depth

Bob Doll's Ten Market Predictions For 2016

Jan 7 2016 | 9:37pm ET

Well-known market strategist Robert Doll has published his annual list of ten predictions...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedge Fund Marketing - Making the Most of Your Salesperson

Jan 20 2016 | 8:11pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth takes a close...