Sat, Jul 23, 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. Opalesque Exclusive: California-based manager launches long/short equity hedge fund with unique algorithm[more]

    Benedicte Gravrand, Opalesque London for New Managers: SJL Capital LLC, an investment advisory firm based in California, has launched its maiden fund, the SJL MarketDNA Hedge Fund LP. The fund, which began trading

  2. Manny Roman to move from Man to Pimco[more]

    Benedicte Gravrand, Opalesque London: Emmanuel (Manny) Roman, an investment world veteran, has been hired by PIMCO, the large US bond fund house, as chief executive officer. PIMCO's current CEO Douglas Hodge will assume a new role as managing director and senior advisor when Roman joins P

  3. Opalesque Exclusive: ArbitrOption outperforms benchmarks, up 7.18% in H1[more]

    Komfie Manalo, Opalesque Asia: Independent registered advisor ArbitrOption breezed through the tumultuous Brexit referendum and outperformed its benchmarks. ArbitrOption was up 7.18% in the first half of 2016 compared to the S&P 500 which gain

  4. Europe - European hedge funds shrink and shutter as turmoil hurts returns, Investors go bargain-hunting for U.K. property after Brexit vote, Brexit: Guidance for fund directors - what to know and what to ask[more]

    European hedge funds shrink and shutter as turmoil hurts returns From Bloomberg.com: Europe’s hedge-fund industry contracted for a sixth straight quarter as the U.K.’s decision to leave the European Union and concerns that China’s growth is slowing caused losses and forced some money man

  5. Platinum Partners starts liquidation of hedge funds following municipal union kickback scandal[more]

    Komfie Manalo, Opalesque Asia: Platinum Partners, the hedge fund in the middle of a New York City municipal union kickback investigation, is reported to be liquidating two of its funds, the New