Collective investor wisdom: Could it work?

[basilio]

One of the most valuable parts of ASF is sharing ideas and research on investments. Hopefully we have dodged a few bullets and picked up some good ideas.

I just came across a boutique investment company which takes this idea one stage further. People are invited to invest and then contribute their ideas and research as part of the decision making process of investing.

Looks interesting and certainly more open than traditional "we'll take your money and run" mobs. Unfortunately they have decided to close up shop and distribute funds back to members. So if you want to have a look and comment be quick.

http://nakedfunds.com.au/AboutUs.aspx

 

[So_Cynical]

Interesting.

"NakedFunds Management is trying something unusual for a fund manager: transparency. The Sydney-based manager doesn’t just reveal the shares in its portfolio periodically, as others do. It goes to the trouble of revealing on its website why those shares are in there to begin with."

And basilio's link wouldn't work for me so http://nakedfunds.com.au/ free to join, some spam perhaps the only price to pay. :dunno: ill have a proper look later on.

 

[Starcraftmazter]

I've seen another site sort of similar which was a sort of a social network for traders/investors, where you could follow an investors and their buy/sell orders. it had a leaderboard, etc.


The only thought that comes to my mind, isn't it basically just a scheme rewarding people by stockpiling dumb money onto their purchases, appreciating their investments for them?

 

[basilio]

As I saw the idea the people running it had a few points in mind.

1) They wanted to tale a more careful approach to investing than simply following indices and fund managers.
2) They wanted to make some money from their approach but not simply gouge investors through the various fees and charges normally charged
3) They were trying to bring on board intelligent investors who, in effect, would do a ton of research and by pooling their knowledge improve the quality of the final decisions.

They have closed up shop at this stage. I don't think they go enough funds under management to pay for all the work. But the figures seemed fairly good.