YouGov enters hedge fund world in tie-up with Numis

LONDON - Online market research company YouGov is getting into the hedge fund business and has formed a joint venture deal with Numis to use its research to identify profitable investment ideas.

has signed a joint venture agreement with investment banking and stockbroking business Numis, which will raise money for the fund, and Four Capital Partners, which will manage the fund's trading.

A number of YouGov directors will be investing in the fund, and Stephan Shakespeare, the YouGov co-founder and chief innovation officer, will be chief executive of the joint venture.

What led to the deal was the accuracy of the research YouGov began to supply financial institutions last year, using its 250,000 strong European online panel. Its YouGovAlpha division was set up in August to supply fund management companies with marketplace assessments of stocks and sectors.

Shakespeare said: "YouGov has demonstrated its consistent accuracy in predicting elections -- well, the financial markets are like having an election every day."

YouGov was founded in 2000 and has pioneered the use of the internet to collect in-depth data for market research. It has worked for clients including Asda, Marks & Spencer and Channel 4.