London Investment Firm Derwent Capital Markets is using Twitter to hedge their future bets, quite literally. The company is using their own proprietary systems to examine Tweets before determining where to put investments in their $40.5 million hedge fund.
According to the company they are currently analyzing 10% of the 10 million tweets sent daily. Using specific trading algorithms and sentiment analysis the company then determines where to put their money.
The idea of using Twitter to determine markets isn’t new, StockTwits offers a third party application for market analysis, however Derwent is the first firm to form a full hedge fund for Twitter trading purposes. [Read more…]