Sat, Jul 30, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers April 2013

Focus - Social media and hedge funds - Part 1: Usage trends - Part 2: Best practice - Part 3: Drivers

Social media and hedge funds, Part 1: Usage trends

Social media and social business are growing: brands now rely on an average of 29 employees to manage more than 20,000 daily interactions across 50 social accounts. The Spredfast Social Business Textbook urges social practitioners to 'sprint to keep up.'

For hedge funds, social media is used as a research tool, the way Derwent, the "Twitter hedge fund", did exclusively during its one month long existence. But when using social media for investor outreach or marketing, new managers in the U.S. must be very aware of what they are doing, lest they infringe advertising rules - even if those regulating financial advisors' use of social media are still fuzzy.

To avoid any pitfalls, fund managers should carefully comply with regulatory requirements, internal monitoring and compliance policies.

Paul Hawtin

Derwent Capital Markets, a London-based investment firm, launched the first sentiment based hedge fund, the Derwent Absolute Return Fund, on 1st July, 2011 with £25m. The so-called "Twitter hedge fund" was inspired by an academic paper titled "Twitter Mood Predicts the Stock Market". Derwent Capital's founder Paul Hawtin explained during an interview on Opalesque TV back then that the raw data necessary to analyze Twitter sentiment was approximately a billion Tweets per week. The fund returned ......................

To view our full article please login

This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.
New Managers
New Managers
New Managers

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