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

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.