In a nationally-syndicated radio show, Paul Franke of the Relative Value investment model in his own words described why he’s a money manager on Covestor.
Really. We didn’t coach him.
“There are incredible advantages in what they are trying to do over mutual funds,” Franke said of our platform. “It’s a revolutionary idea. And we just had to be a part of it.”
Franke also had a lot to say about the macroeconomic picture. In short, the problems in Europe are very well known. It’s a range of other macro problems that are likely to take markets by surprise, which is a big reason his model is net short right now.
Among Franke’s points:
- Covestor’s technology allows investors to track his model, “almost precisely” in a personal account, using our trade-mirroring technology.
- Customers actually own the stocks, and they trade directly in customers’ names.
- Fees are clearly disclosed, and transaction fees that eat into performance are low.
- For tax purposes, everything is in the customer’s’ name, not in a collective, as is the case with a mutual fund.
- Covestor provides lots of data and manager details, including daily reporting of all account transactions.
Now, keep in mind, past performance is not indicative of future results. And while manager trades are replicated for clients in near real-time, for the public we update manager moves daily and not in real time (which Franke incorrectly implies).
But enough of my words. Listen to Franke’s, below. You gotta love his enthusiasm!
