Sun, May 1, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge funds leverage social media for trading decisions

Thursday, May 24, 2012

amb
Seth McGuire
Bailey McCann, Opalesque New York:

According to data from Twitter, when last year's Washington D.C. earthquake hit, users in New York read about it on Twitter 30 seconds before they felt under their feet. Ever since Twitter started breaking news through user networks, a variety of social media monitoring firms have been working to cash in on this edge by providing monitoring and analysis of social media services for busy company executives. Now, that trend is moving into hedge funds. US-based firm Gnip is providing hedge funds with a real time data feed that they are using to influence trading decisions.

Gnip was founded in 2008 when social media was making a splash in the consumer advertising space. Now, it is the largest provider of social data to the enterprise and delivers 90 billion public social data activities each month. In recent years other, less product focused industries have started to leverage social media monitoring to understand public moods and capture breaking news, avoiding the lag between when the news actually breaks and when it gets picked up by traditional media - if it gets picked up at all.

In essence, Gnip provides an aggregate data feed of public social media posts. So far, a dozen funds amounting to $30bn in assets under management are leveraging this data feed to impact their trading choices.

"Funds that choose us are typically $1bn to $5bn AuM, with a heavy quant slant," says Seth McGuire Director of Assets and Finan......................

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. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  3. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  4. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the

  5. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n