Fri, Sep 4, 2015
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: New Detroit-based CTA seeks to take advantage of coming volatility[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging manager has just set up his one-man shop in the city of Detroit. Synchronicity Futures,

  2. Cliff Asness attracts $360 million as liquid alternative funds hold up[more]

    From Bloomberg.com: As U.S. stocks suffered their worst month in more than three years in August, Clifford Asness’s managed futures fund was able to profit. Investors are taking notice. The $9.12 billion AQR Managed Futures Strategy Fund pulled in an estimated $360 million in net subscriptions last

  3. Opalesque Exclusive: When the SEC calls, fund managers need to get out of their own way[more]

    Bailey McCann, Opalesque New York: New pressure is hitting alternative investment funds from all angles. So far this month both hedge fund and private equity players have seen enforcement actions, and subsequent fines over fees, disclosures, and misleading statements. Citi one of the biggest

  4. Performance - Einhorn and Loeb's hedge funds both decline 5% in August, Some target-date funds miss in the market turmoil[more]

    Einhorn and Loeb's hedge funds both decline 5% in August From Reuters.com: Hedge fund billionaires David Einhorn and Daniel Loeb saw their main funds lose roughly 5 percent in August during a dramatic market sell off, two people familiar with their returns said on Monday. Einhorn's

  5. Fortress hedge fund manager David Dredge says markets trouble on the way[more]

    From AFR.com: David Dredge of global hedge fund Fortress has built a career studying, predicting and protecting against the world's major financial crises. The recent convulsions in global sharemarkets are "just the beginning" of a painful adjustment as money drains from the emerging market economie

 

banner