London based investment boutique, Derwent Capital Markets, yesterday launched the highly anticipated “Twitter” hedge fund. The fund, domiciled in the Cayman Islands, will be Europe’s first to utilise sentiment derived from real-time social media data analysis.
“For years investors have widely accepted that financial markets are driven by fear and greed but we’ve never before had the technology or data to be able to quantify human emotion.” Paul Hawtin, founder and fund manager, said, adding, “This is the 4th dimension.”
Hawtin will manage a portfolio consisting of liquid equities and equity indices with the aim of achieving consistent absolute returns for investors. The fund manager will use real-time sentiment analysis to provide what it hopes will be an invaluable insight into the “fear and greed” aspect within the financial markets.
“Social media is not just changing the way we live, it is now also changing the way we invest.” Dale Gabbert, a partner at the law firm advising the hedge fund said. “Given the fund’s use of social media data, we’ve worked closely with our market leading media group on IP issues and look forward to continuing our relationship with Derwent.”