New York (HedgeCo.net) – A London-based hedge fund is investing 25 million pounds ($40.67 million) in the hope that Twitter research can accurately predict the stock market, according to IU campus paper The Indiana Daily Student.

The hedge fund’s founder, Paul Hawtin has hired Professor Johan Bollen and co-researcher Huina Mao, as private consultants.

“Bollen found that when looking at mood data extracted from millions of tweets, he could accurately predict the changes in the Dow Jones Industrial Average three to four days later with an astonishing 87.6 percent accuracy.” The campus paper reported.

Bollen put his research online and there was an almost instant response. “That same weekend my phone was ringing off the hook,” Bollen said. “Colleagues, academics, investors, friends.”

Bollen and Mao may receive up to 35% of the income received from the University’s licensing contract with the hedge fund Derwent Capital Markets.

Editing by Alex Akesson
For HedgeCo.net
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