Thursday, June 7, 2007

The dawn of "Covesting"

David Jackson from seeking alpha posted a great article on Covestor, a newly launched site that allows investors to track their performance and the performance of other members. The eventual goal will be to charge users to "subscribe" to a members trades, and then split the profits with the investor. Covestor is focusing on a non-professional audience and allowing them to monetize their trading ability. I think this is an interesting approach--it's a bit like a platform that essentially allows anyone to start their own newsletter service, and simply pays a cut to Covestor for their platform.

Outside of the potential financial benefit, Covestor's portfolio tracking itself is pretty impressive--it automatically calculates your portfolio's beta, sharpe ratio, and alpha, and confirms your trades from your brokerage account without you needing to input anything manually. I am in the midst of setting up an account, and will post a link to my portfolio once it is complete.

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