Twitter Hedge Fund Delays Launch Citing Demand

Date: Tuesday, April 12, 2011
Author: Ricardo Kaulessar, HedgeFund.net

A hedge fund that plans to utilize Twitter feeds has postponed its debut due to growing demand by potential investors, according to a report.

The fund, created by London-based hedge fund investors and brothers Paul and Simon Hawtin, was supposed to launch April 1 with $40 million in assets.

However, the fund has gained interest from investors worldwide. Fundraising that totaled almost $100 million forced the Hawtins to restructure the fund to allow for more investors, an IR Web Report said.

Paul Hawtin declined to comment when contacted by HedgeFund.net.

But a source close to the situation confirmed to a reporter that the launch has been delayed by at least a week as the fund is waiting for regulatory approval.

The fund, once it is launched, will use a model to analyze a collection of human emotions based on Twitter feeds to predict activity in the markets on a given day. The model was created by an Indiana University informatics professor, Johan Bollen, who will work as a consultant to the fund.

Paul Hawtin has said in past reports that he believes the model can earn 15% to 20% returns.