Social investing site Covestor has attracted top wealth managers, such as Navelier & Associates, and four other established investment firms, allowing everyday investors to mirror their moves.The news suggests that big money managers are exploring social investing sites as a new channel. The other firms are AlphaMark Advisors LLC, Braver Wealth Management LLC, King Investment Advisors Inc. and Mosaid Financial Partners Inc. Altogether, the firms represent over $4 billion in assets.
The five firms have posted 12 new portfolios on the site, giving Covestor a total of 24 professional money manager models and 34 models from non-professionals in the Covestor investment marketplace.
The deal is also a boost for Covestor in that it brings brand-name money managers to the platform. According to Investment News, a financial news service for financial advisers, that broke the story on Tuesday, "Some representatives of the separate account industry had originally criticized Covestor platform for using amateur and hobbyist money managers."
Covestor subscribers now have access to big name investment managers that normally require $250,000 or more to set up a separate account. Covestor.com is an online investment site that allows retail investors to trade alongside other individual or professional managers by replicating the trades of model managers. The concept is that investors, with lower minimums and fees, can follow and automatically emulate the trades of professional and non-professional investors with proven track records. In July, Covestor Investment Management, a registered investment adviser with the SEC, launched its platform, CV.IM. See ,WST's story, Covestor Disrupts Wealth Management With New Multi-Manager Account."
With a minimum of $10,000, investors can subscribe to different strategies of individuals or professional managers whose strategies they follow on the site. But now brand name money managers are viewing the social investing site as a new distribution vehicle or perhaps an alternative to marketing through the traditional wirehouses.Social investing site Covestor.com has attracted top wealth managers, such as Navelier & Associates, and four other established investment firms, allowing everyday investors to mirror their moves. Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio