Sat, Aug 23, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Derwent Capital's 'Twitter fund' sees negative sentiment and expects downturn

Monday, July 25, 2011

amb
Paul Hawtin
From Kirsten Bischoff, Opalesque New York:

This year, one of the launching funds that received its fair share of attention was a fund often referred to as "the Twitter fund". Launched by London-based Derwent Capital, the first sentiment-based hedge fund started official operations on July 1st and was inspired by an academic paper titled Twitter Mood Predicts the Stock Market" , by Professor John Bollen of Indiana University and two co-authors (Huina Mao and Xiao-Jun Zeng).

What the paper found was that the change in sentiment on Twitter was three days ahead of [movement] of the Dow Jones, explained Derwent Capital’s Founder and Fund Manager Paul Hawtin during a recent interview with Matthias Knab on Opalesque TV. "It was an amazing discovery and even to this day we still do not fully understand the correlation between [Twitter and the Dow] and why we see that correlation but we are starting to understand it in a bit more detail," Hawtin says.

With six months trial behind them, the accuracy with which the firm has been able to predict the daily direction of the Dow has been 80%-90%, and those results were what drove the firm to launch the Derwent Absolute Return Fund.

Hawtin, whose background is in quantitative trading, explains that th......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Institutions – Texas Employees sets 2015 tactical plan for alternatives, CalPERS' real estate consultant cautions the pension fund's investment committee, Why Sunsuper likes hedge funds[more]

    Texas Employees sets 2015 tactical plan for alternatives From PIOnline.com: Texas Employees Retirement System will invest in up to four new hedge funds in the next fiscal year, which begins Sept. 1. Trustees approved 2015 tactical investment plans for the hedge fund, private equity and in

  2. Private equity follows hedge funds into reinsurance for long-term capital[more]

    From Artemis.bm: It’s not just hedge funds that are entering the insurance and reinsurance market in search of so-called long-term capital to put to work in their strategies, private equity firms targeting the space are also seeking opportunities to add assets under management. The entry of large pr

  3. North America – New York City’s next hot neighborhoods targeted with property funds[more]

    From Bloomberg.com: New York’s real estate world is filled with tales of ordinary people who bought property decades ago and saw values skyrocket to the millions. Seth Weissman is seeking investors to get in early on the next hot neighborhoods. The veteran of Goldman Sachs Group Inc. and hedge

  4. Investing – George Soros bets $2bn on stock market collapse, Warren Buffett's Berkshire reveals Charter stake, cuts DirecTV, Hedge funds lusting to cash out of MGM, Top hedge fund managers are buying Ally Financial, Hedge funds dumped 5m Herbalife shares in Q2, Paulson & Co hedge fund ups Puerto Rico real estate bet, Netflix Inc., Citigroup Inc, Google Inc are top new picks in Tiger Management’s 13F[more]

    George Soros bets $2bn on stock market collapse From Newsmax.com: Billionaire investor George Soros has increased his financial bet that U.S. stocks will collapse to more than $2 billion. The legendary hedge fund manager has been raising his negative bet on the Standard & Poor's 500 Inde

  5. Investors now net short S&P500 and increased Russell shorts, technicals suggest further selling[more]

    Komfie Manalo, Opalesque Asia: Market Neutral funds increased their market exposure to -1% net short from -6% net short last week, according to Bank of America Merrill Lynch’s Hedge Fund Monitor. The report also added