Twitter Fund Founder Launches New Venture

Jul 12 2013 | 9:00am ET

Paul Hawtin is taking another stab at social media-based trading.

Hawtin, the man behind the "Twitter Fund" and Derwent Capital Markets is now launching Cayman Atlantic, which will focus on Twitter and Facebook to gauge sentiment about companies and other trading opportunities.

Hawtin told CNN Cayman is structured differently than his previous efforts, as managed trading accounts rather than a fund, offering improved liquidity and better analytics technology.

Cayman's proprietary technology uses filters and algorithms to scan 400 million tweets daily, boiling the information down to roughly five key tweets based on which the firm will trade global equities or commodities.

"We are trying to detect events that are breaking out on Twitter before the press, the media and the world are hearing about it," Hawtin told CNN.

Hawtin is targeting 12% annual returns and said over the 11 months he's been modeling the strategy it has returned 18%. The minimum investment is $150,000 to open an account. The fund expects to be approved to trade by the Cayman Islands Monetary Authority later this month.

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