

Twitter-based Hedge Fund - organicgrant
http://www.cnbc.com/id/41251767

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sosuke
I wonder if the April 1st launch date was intentional. They might be better
off doing it after that day so everyone doesn't right it off as a joke.

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bpeters
I now have zero faith in our financial sector. How can you justify making
investment decisions based on the "mood" of the market which is discovered by
data mining Twitter? The "mood" of the market only shows you where the market
has been, not where the market is going. Any previous information showing that
the Twitter mood reflects the market, is causation without correlation.

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austinB
I completely disagree. It is one thing if this fund's algorithm is based
entirely off of data extracted from Twitter, that would be an utter mistake.
However, if the algorithm is combining fundamental financial data, analyst's
outlooks/forward looking statements, current trends/movements in the market,
AND Twitter/media data then I think this could be quite successful. A huge
reason why our capital markets are not perfect is because of emotion in the
market (case in point Ford's strong run for the last year fueled by optimism
and relatively strong performance and the pullback since qtr 4 earnings were
released, and a thousand or more other examples). Effective investment
algorithms must attempt to be comprehensive in taking into account factors
that effect share prices and the public's sentiment is certainly one of those
factors.

The positive trading sessions for companies with quality Super Bowl
advertisements following the big game is a perfect example of this point.
Check at this article: [http://www.kiplinger.com/columns/picks/archive/does-
the-supe...](http://www.kiplinger.com/columns/picks/archive/does-the-super-
bowl-help-boost-advertisers-stock-prices.html)

A 1% lift captured in ten days on a hundred million dollars is what annualized
return? I'll let you do the math, but I'd take it.

