Hedge funds see diminishing returns in Trump’s tweets



From tariffs to the Fed, the president’s social media can rock markets — but is the effect fading?


Excerpt -"More attention is paid to Trump’s tweets by discretionary managers, rather than systematic hedge funds that deploy machines to guide trading decisions.“Aspect Capital has not built any trading strategies that look at the president’s Twitter feed,” said Christopher Reeve, director of investment solutions at Aspect, one of the UK’s largest computer-driven hedge funds. “It’s not beyond the realm of possibility that we might, but it would be hard to design something systematic for this.”Many discretionary hedge fund traders (where humans dictate trading strategy, as opposed to systematic hedge funds that make rule-based, computerised trading decisions) continue to underperform relative to the S&P 500 index and are desperate to generate outperformance, or alpha, by any means necessary. Some of them say Trump’s Twitter feed has been a godsend."


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