Social investment startup Covestor opens to more aspiring portfolio managers
Venture Beat, December 09, 2009
Covestor, a startup that lets people mimic other investors’ moves, is opening its doors and allowing anyone to become a portfolio manager on its investment management service. It will create many more investment options on the site for Covestor members; previously there were only 25 models that users could follow.
Becoming a manager on the site is contingent on a few conditions: you have to disclose all your real brokerage moves and share a year of performance history. Managers on Covestor can attract others to “follow” and copy their trades, while earning fees based on how many people track them or the total value of the assets they guide.
“We’re trying to bring the principles and practices of the Internet to finance and allow clients to pick what’s most appropriate for them,” said co-founder Perry Blacher. “As long as you’re willing to share your real investment activity and be transparent, then we’ll set you up with a level playing field.”
