Sun, Sep 25, 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. Star names struggle as smaller hedge funds make hay[more]

    From eFinancialnews.com: Many big-name funds have been hit by sharp reversals in markets, including US government bonds and UK stocks, and have struggled to extricate themselves from positions that have gone bad. According to data group eVestment, hedge funds below $250 million in size are up 4.1% t

  2. North America - Acela fight splits hedge fund Connecticut and old money enclaves[more]

    From Bloomberg.com: Connecticut’s residential coastline is two worlds, the one of newcomer millionaires and one whose wealth and New England roots span generations. Now, their differences over a rail route threaten to gum up plans for the U.S. Northeast’s fastest-ever trains. About 30 miles from Man

  3. Activist News - Caesars offers creditors another $1.6bn, would spell end of hedge fund ownership, Activist investors double chance of CEO exits[more]

    Caesars offers creditors another $1.6bn, would spell end of hedge fund ownership From Calvinayre.com: Casino operator Caesars Entertainment has improved its offer to junior creditors to over $5b, but the offer is only good until Friday. On Wednesday, Caesars added an extra $1.6b to the $

  4. Comment - ‘Gut feeling’ measurable in hedge fund traders, How hedge fund managers can use blockchain to maximize benefits[more]

    ‘Gut feeling’ measurable in hedge fund traders From Laboratoryequipment.com: “Gut feeling” is an intangible – an automatic hunch – based on prior experience for some people. But the “gut feeling” is actually a measurable response developed in professionals doing some high-risk work, acco

  5. Opalesque Exclusive: Modern investor tools (2): A platform that does the job for you[more]

    Benedicte Gravrand, Opalesque Geneva: A new series on technology providers that assist asset allocators. There is disruption in the investor part of the world of hedge funds, coming from platforms that can replace traditionally-run search and analysis. Here is one of them. L