Mon, Mar 30, 2015
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. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. Other Voices: The role of diversification in CTA portfolios[more]

    2014 brought a resurgence of managed futures strategies, or CTAs, which performed very well as a whole, outperforming all other hedge fund strategies. However, a closer look reveals that there was a wide range of performance, or return dispersion, across managers. The bottom line? Not all CTAs

  4. Neuberger Berman unit buys 20% stake in activist hedge fund Jana Partners for $2bn[more]

    Komfie Manalo, Opalesque Asia: Neuberger Berman’s unit Dyal Capital Partners bought a 20% stake in activist hedge fund firm Jana Partners worth $2bn, WSJ.com reports. The deal comes as activi

  5. Hedge fund launches fall again, $1bn funds found to outperform even smaller hedge funds[more]

    Komfie Manalo, Opalesque Asia: The number of new hedge fund launches fell again in 2014, the third consecutive year of decline, while fund liquidations saw their first drop since 2010, according to the latest HFR Market Microstructure Industry Report released by industry data provider HFR. Acc

 

banner