I’ve written a bunch about Covestor and I have this widget on my right sidebar that shows how my public stock portfolio is doing (not well).
As is sometimes the case with things I post about on this blog, our firm Union Square Ventures has become an investor in Covestor. The financing was announced today and my partner Albert Wenger, who will be joining Covestor’s board, wrote about the reasons we invested in Covestor today on the Union Square Ventures blog.
There is a great discussion happening in the comments to my post yesterday on The Declining Power Of The Firm. Several commenters mentioned the effect that hedge funds have had on the financial markets. And they point out that contrary to the large financial services companies that have dominated the financial sector for years, the hedge funds are small nimble and are delivering better returns.
Covestor takes that idea one step further and suggests that individuals, trading for their own account, like bloggers writing in their pajamas, might be be the best option for investors looking to generate outperformance in the financial markets.
Of course, Covestor has to prove that hypothesis, and our bet is they will. Stay tuned.