Eagle Alpha unveils social media trading tool

Source: Eagle Alpha

A new way of accessing untapped alpha-generating information has arrived, thanks to a compliance-friendly way to access tweets. The service, Social Sonar, has been developed by Eagle Alpha, a firm specialising in the curation of the web.

Social Sonar channels intelligence on stocks and global macro topics compliantly and efficiently. Unique technology and a team of research analysts build lists of the most influential people to follow on Twitter, from UK CEOs to US Congressmen and those tweeting from the BP oil spill trial. This enables investors to identify news before the market as well as other relevant insights from Twitter.

A number of recent examples highlight Twitter's potential in delivering alpha:
• On the 11th July 2013 a tweet stated that Grayling was calling in the Serious Fraud Office to look into G4S because it had refused to cooperate with a voluntary forensic audit. This was published at 12.16. 32 minutes later a newswire published the news and the share price dropped by 7%
• At 8.05am on the 30th July 2013 a tweet from a South African TV station reported the shooting of a union member at mining company, Lonmin. 7 minutes later a newswire published the story. The stock fell 2% inter-day while other mining stocks remained flat

Eagle Alpha also highlights tweets that provide interesting colour on the markets:
• CCL (Carnival): On 20th August at 10.31, John Honeywell, cruise blogger tweeted saying "BREAKING: 2,000 Australian cruise passengers stuck in Singapore after Sun Princess voyage cancelled because of power problem". This was its first cruise after the Sun Princess's $30m drydock refurb and was the latest in a series of engine problems for Carnival
• AAl (Anglo American): On 1st October at 15.37 SA Labour News, newswire based in Johannesburg, tweeted that South African Labour Court ruling on NUM bid to stop Anglo American Platinum layoffs is expected next week. The ruling will affect 4500 workers currently striking over proposed layoffs. SA Labour News were the first to break this news

For firms put off by compliance concerns or the effort required to uncover valuable insights, Social Sonar brings pl Sonar brinbrings previously unouslously unmonitored information into play. For those already mining Twitter for market relevant information, it distils data much more effectively.

Mike Reuter, Senior Broker, Tradition, who has been testing Social Sonar, provides his take on the service: "Eagle Alpha has finally brought twitter to the Square Mile. The features, which include smart keyword searches and email alerts, allow me to access market relevant tweets that I would never have found by searching through bog standard twitter channels."

The service is available to market participants seeking an investment edge including the buy-side, sell-side, corporates and retail investors. It is read-only and provides clear records and audit trails to meet all compliance requirements.

"Twitter is full of alpha-generating potential," says Emmett Kilduff, CEO and founder, Eagle Alpha. "Currently this potential is masked by excessive white noise, inefficiencies in accessing relevant tweets and compliance concerns. Social Sonar changes all that. It provides alpha-generating insights direct to traders and investors in a convenient, controlled and auditable fashion."

With 500m tweets, 200m tweeters and 135,000 new users each day it is becoming increasingly difficult to unearth relevant data. Eagle Alpha rectifies this by enabling users to access validated pre-built and bespoke lists.

James MacLachlan, Senior Trader, CF Global adds his take on Social Sonar: "From game-changing CEO opinions to instant reaction around key financial news and company reporting, Social Sonar is an essential addition to the run of the mill industry newswire services and gagged sell-side analysts."

Social Sonar is just one the services provided by Eagle Alpha. As well as Twitter, the firm monitors other social media, news sites, blogs and forums to uncover longer-term opportunities by piecing together online content and analysing it in the context of broader sector and stock developments. This provides unique insights to inform investment strategies. 

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