hedge funds and twitter – glimpses of future?
Since creation of the first hedge fund in 1949, 10.000 funds and $2 trillion past, there is a change under way.
predict daily moves in the Dow Jones … change in emotions expressed online would be followed between two and six days later by a move in the index… predict its movements with 87.6% accuracy.
Still small compared to standard ones, the fund analyzes thousands of tweets for words “happy,” “sad,” “angry,” etc. to determine public sentiment/mood.