Centaur Corporate is launching the Galileo Fund, which will trade in sports betting, according to the Financial Times.
The specific strategies include trading in football, racing and tennis on Betfair and other online exchanges that facilitate “in-running,” hosting markets betting on events already in progress.
Tony Woodhams, a managing director at Centaur, says the strategy is like derivatives or foreign exchange trading, only better. Because investors in the sports betting fund should benefit from the fact that many participants are driven by emotion rather than logic.
Of course Galileo presupposes that the investors in the Galileo fund are experienced investors who know enough not to use emotion. Tons of financial pros own their own teams, which would suggest bias, not to mention everyone has sentimental favourites.
But there’s good reason to exploit this market:
“It’s more an entertainment for them. This provides a great opportunity for a clinically minded group.”
Is sports investing a new trend? A soccer-only hedge fund launched just last month.
Read the article at the Financial Times.