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Hedge funds try to promote sports betting as an asset class

Several hedge funds in Europe and Australia have built substantial businesses betting on sports, often utilizing quantitative techniques not dissimilar to those frequently used to invest in stocks.

Two trading companies are trying to prove him wrong. Melbourne-based Priomha Capital, which claims to be the “world’s premier sports hedge fund”, wagers on European football, cricket and golf. Founded in 2010, the firm manages about $20m. Stratagem, a rival based in Britain that styles itself as a technology business, wants to raise $25m from rich individuals.