And somehow they came up with £25M

December 28, 2010 5:44 AM

As a followup to this October FPP - Researchers claim Tweets predict The Dow - earlier this week Derwent Capital Markets announced they're forming a hedge fund and have raised £25M to trade the strategy outlined in the paper [ . pdf ] authored by Bollen, Mao & Zeng, hiring at least one of the researchers as part of the deal. No word on whether or not they'll use their twitter feed to announce trades as they occur, or performance after the fact - as they do with their dummy accounts.
posted by Mutant to MetaFilter-Related at 5:44 AM (4 comments total)

While Derwint's manager, Paul Hawtin, is confident the fund can realise 15% to 20% returns, this, apparently, is just the start: "I believe with the Twitter indicator (once fully optimized) we can achieve even better annual returns".

Dealbreaker headlines this as a can't lose strategy, while BusinessInsiders ran with the BUBBLE WATCH headline. Regardless, folks have already started speculating openly on how to game the strategy.
posted by Mutant at 6:02 AM on December 28, 2010 [2 favorites]

Just make this a FPP, please.
posted by empath at 6:13 AM on December 28, 2010

Seems like we need to add something to the MeTa posting page about it not being for followups anymore, because clearly people aren't getting the message.
posted by Horace Rumpole at 6:16 AM on December 28, 2010 [1 favorite]

Yeah, we may want to take look at the language there and see if there's something that might blinkenlight this whole "if it's a substantial update that would standalone as its own post, just make a post out of it" thing.

In the mean time, that.
posted by cortex (staff) at 6:20 AM on December 28, 2010