Fri, Oct 24, 2014
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

Banner

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. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  2. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  3. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  4. Goldman in talks to acquire IndexIQ[more]

    From Bloomberg.com: Can Goldman Sachs put ETF investors on a liquid diet? Goldman is in talks to acquire IndexIQ, Reuters has reported. Index IQ is a small exchange-traded-fund firm known mostly for products that replicate hedge fund strategies, called "liquid alternative" ETFs. While IndexIQ has 11

  5. Other Voices: CALPERS dilemma should be a warning to hedge funds wanting institutional investors[more]

    From Ian Hamilton, founder of IDS Group. A quick comment on the CALPERS’ disinvestment from the hedge fund market and the jitters it is causing. Pension Funds should not be sheep and follow CALPERS’ decision as the issues that CALPERS has with hedge fund investments are in many ways unique t