Behavioral Finance Hedge Fund Can’t Cope With the Irony and Insults of the British

The FT profiles MarketPsy Capital, a hedge fund that attempts to invest based on investor psychology. The fund scans newspaper articles, blogs and message boards in an effort to see how the crowd feels about a stock.
There is, however, one small snag:

But it is not perfect. For now, MarketPsy trades only US stocks, as its linguistic analysis cannot cope with the irony and insults on British message boards and blogs.

Posted by on July 19th, 2010 at 1:35 pm


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