Finalternatives reports that 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 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....
More? Go to https://www.finalternatives.com/node/20582
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