Social Investing Site Covestor Now Collectively "Manages" $100 Million
It takes guts to bear your investing acumen (or lack thereof) to the world. For instance, here is VC Fred Wilson’s Covestor page (down 1.47 percent since he joined about a week ago—Fred, get out of oil and precious metals already!). You can even put a Covestor widget on your blog to further gain a following.
The idea is that eventually, the best investors will emerge, and Covestor plans on creating ways to invest in their “funds.” They are actually just going to be selling the data and linking it to the brokerage accounts of people who choose to be followers. The investing stars who arise from this social soup will be able to offer their trading data for a fee once they build a track record or give it away for free and enjoy the notoriety of being an investing whiz. Covestor will take its cut as a management fee. The New York City startup has raised angel money from the founders of Seekingalpha, Betfair, Tribe.net, and Wallstrip.