| Website | covestor.com |
| Blog | covestor.typepad.com |
| Category | Consumer Web |
| Phone | 646.217.4205 |
| Employees | |
| Description | Portfolio sharing service |
| Total | $7.5M |
| Angel, 6/07 Roger Ehrenberg | $1M |
| Series A, 4/08 Union Square Ventures Spark Capital Amadeus Capital Partners | $6.5M |
Covestor is a portfolio-sharing service that offers individual (self-directed) investors the opportunity to compete with, and be rewarded like, professionals. Covestor enables investors to build a verified track record and to collect a following of other investors based upon it. Covestor aims to de-institutionalize fund management.
The service creates for each member a Morningstar-style fact sheet to highlight their investment prowess. By applying institutional grade mark to market daily performance calculation to individuals’ accounts, Covestor allows users to track their own portfolio (e.g. Sharpe, Beta, Maximum Drawdown) and to benchmark their activity both against other members, against market indices and against professional fund managers.
Members are then ranked according to more than 150 different dimensions to allow other users to find and track those who match their investment goals. If you choose to track a member, you will receive an email notification of each trade the member makes and you can decide whether to replicate this in your own portfolio. It is free to track a Covestor member.
Covestor’s key feature is that stock portfolios are tied directly to members’ actual equity accounts (eTrade, Scottrade, etc.). It is the first service which allows you to see what investors are really doing alongside what they say are doing. Using a secure link provided by Yodlee, members create a “view only” data feed to their broker.
Starting in 2008, Covestor will allow users to invest directly alongside other members of the site, who will be compensated for their following.
Over $100 million dollars in securities are shared through the service. Its members are located in more than 40 countries and hold positions in over 4,000 different securities. To ensure privacy, all data is normalized and members can choose to remain anonymous on the site.
Competitors include Fidelity, Puttnam, Oppenheim and Vanguard.
| Website | covestor.com |
| Stage | Beta |
| Tags | social-stock-picking |
