Does Anne Hathaway Control Berkshire Hathaway?

by Nate Wooley | February 25, 2013 10:38 am

[1]Do automated trading systems mistake actress Anne Hathaway for Berkshire Hathaway (NYSE:BRK.B[2], BRK.A[3])?

At issue might be the way in which automated trading algorithms handle trades, reports Global Macro Monitor[4]. By seeing the spike in media mentions regarding the actress — and current Oscar winner — Anne Hathaway and mistaking it for mentions of company Berkshire Hathaway, the automated systems might be bidding up the price of the company’s stock on irrelevant information.

A few years ago, the trend was first mentioned in The Atlantic[5]. A blogger there, Alex Madrigal, noticed six instances where Berkshire Hathaway’s stock had trended up following Anne Hathaway getting significant media attention. In response to a question from The Atlantic at the time about the correlation, a software developer who sets up automated trading systems could only reply, “maybe.”

No one is saying that there’s a direct correlation between actress Hathaway making the news and Warren Buffet’s Berkshire Hathaway. But it’s possible that the programs don’t know that.

More stories about acting:

Endnotes:

  1. [Image]: https://investorplace.com/wp-content/uploads/2013/02/AnneHathawayJan10.jpg
  2. BRK.B: http://studio-5.financialcontent.com/investplace/quote?Symbol=BRK.B
  3. BRK.A: http://studio-5.financialcontent.com/investplace/quote?Symbol=BRK.A
  4. reports Global Macro Monitor: http://macromon.wordpress.com/2013/02/24/the-oscar-trade-long-berkshire-hathaway-on-annes-oscar/
  5. The Atlantic: http://www.theatlantic.com/technology/archive/2011/03/does-anne-hathaway-news-drive-berkshire-hathaways-stock/72661/
  6. Rumor Has It Flat-Broke Lindsay Lohan Can’t Cover Rent: https://investorplace.com/2013/01/rumor-has-it-flat-broke-lindsay-lohan-cant-cover-rent/
  7. Oscar Nominations: Which Films Got the Most Bang For Their Buck: https://investorplace.com/2013/01/oscar-nominations-which-films-got-the-most-bang-for-their-buck/
  8. Oscar Nods Mean Little for Investors: https://investorplace.com/2012/02/oscar-nods-mean-little-for-investors/

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