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Gnip Director of Asset Management Seth McGuire on how social data can help investors in their investment strategy.
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-- media making huge waves in the market with some big hedge fund managers actually using Twitter posts they see.
To help make investment decisions.
-- -- wires is director of asset management of financial technology at getting hit.
-- get it to provides real time social media data for its clients how do you do that.
Yet we partner with the actual social media publishers so -- Twitter word press stock twits they provide us a stream of their data.
Which we then send to our clients -- do the analysis -- OK so give us an example of how you would do it.
How we would use our clients better how -- -- so a great example here is the breaking news of Osama -- months that you write that news broke on Twitter.
Industry now I wanna Don rumsfeld's.
-- to the staff -- loud and it took about twenty minutes of that news to reach -- traditional days.
It's the way our clients use it is where piping through tweet about.
Hi there once they've identified that are important by a keyword or just a kind of a general percentage of tweets and they're gonna identify trends like.
Some belong instead markets retreated that starts to grow that story takes off and they noticed that and twenty minutes later when it reaches traditional media party made some decisions based on it.
Now let me ask about privacy because a lot of people are tweeting and are not aware that some of that information be put in these I think -- -- fire hoses.
Which is that for the entire -- new coal fire hose.
If I know my my data was going to far as I might not appreciate it -- this an issue that's that's -- of our heart we only provide public data.
When I mean by that is if you were to logon to Twitter right.
Now and search for some -- -- you would find the exact same -- it'll -- out so it's only public you know.
What we're able to do is aggregated and delivered in -- real -- -- so it's faster it's machine readable but it's public so if people start to -- that they that if you drop a certain kind of Smart -- -- the glass -- more quickly you might get that company's name out there quickly and that may be a stock that some hedge fund shorts.
How reliable is this information when it's coming from the average Joe -- on the straight -- -- I think there there are two points -- that the first is that one none of our clients are trading solely on the stand up.
-- no -- taking a tweet and trading on it.
These are normally algorithmic traders were using this as one other factor and what they deal and the second point here is actually it's really hard to -- the system.
We're talking about 250 million -- today so one or two -- tweets me or are not -- game -- -- actually once you've done some analysis of the data you see there's a very distinct curve four or -- a true story.
And full stores tend to push down you have a crowd source mechanism here.
Just like I would watch and you shall I trust you I wouldn't watch -- I don't trust you and I wouldn't -- tweet you I don't trust it's the same mechanism.
Assessment whether his money to be made in data and he is mining and good to see you thank you very much thanks -- that is so watch your company growth see a decline.
