Okay, maybe not ‘us’ as in FT Alphaville, but they are watching some other financial blogs.

From Tim Human at the Cross Border Group:

Data firm monitoring influential blog sites Hedge funds are testing out a data feed produced by monitoring a group of financial commentators that includes bloggers.

The trial is still at an early stage, but it shows how seriously the investment community is taking the opinions of those working outside traditional media outlets.

The feed – put together by Alacra, a data aggregator – monitors the output of around 25,000 analysts by combing the web for their comments. This group contains a number of prominent bloggers, such as Barry Ritholtz, Henry Blodget, Felix Salmon and Fred Wilson.

Hedge funds are taking that feed, mixing it with other data, and using the combination to try to create successful algorithmic trading strategies. So far, the data suggest stock prices outperform when sentiment at a given company has been positive for a number of weeks.

Positive for a number of weeks? They’re most definitely not watching FT Alphaville then . . .

According to Cross Border, other blogs being watched include:

• Howard Lindzon – HowardLindzon.com

• Ken Doctor – Content Bridges

• Michael Parekh – Michael Parekh on IT

• Paul Kedrosky – Infectious Greed

• Rafat Ali – Paid Content

• Roger Ehrenberg – Information Arbitrage

Spooky.

Related links:
Rise of the news-reading machines - FT Alphaville
Open source finance, ratings and research edition – FT Alphaville

This entry was posted by Tracy Alloway on Thursday, May 6th, 2010 at 12:40 and is filed under Capital markets, Hedge funds, People. Tagged with Algorithmic trading, blogging, hedge funds. Edit this entry.