Hedge Funds Investing in Sports Betting?

10/04/2010 11:04
Type Online Report
Theme uk

Hedge Funds are beginning to invest in Sports Betting, but not in the way that you might think. They are not buying shares in public betting companies.

Centaur, a London based company, has just launched Galileo (link: http://www.centaurgalileo.com /).

Galileo's trading team analyzes and trades the betting markets, using a system of quantitative analysis. Tony Woddhams, the managing director of Centaur, stated "We have unique software we've written over five years that ensures we purely trade on statistics and probabilities. The process is very clinical, which is our edge."

According to Woodhams, sports betting is an ideal money making vehicle because the sports odds market created by the bookies and other participants in the sports gambling business has a lot of mispricing. Not all oddsmakers will set an accurate line for every single game. Further, the betting lines, and thus one's potential performance, is not affected by the economy, and there's no intervention from outside parties like governments and central banks.

This raises an age old question: are the bookies beatable? Centaur certainly seems to think so, as their goal goal is to grow assets under management to $100 million over the next two years.

Initially they are betting on european football (soccer), tennis, cricket, horse racing, and golf, but they have plans to expand ther betting repetoire to American Footbal and baseball over the course of the coming year.

"Q"
Wheretobet.com

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