Some time ago there was a lot of talk on here about the possibility of Stockopedia setting up an investment trust/unit trust or similar based on the stockranks.
Has that idea now fallen by the wayside?
I would be interested in hearing more on this too.
How would it work? as an execution only service or an investable fund where Stocko would also retain the funds?
Along those same lines it would be great if we could have an execution service which mimicked a guru strategy of your choice. Any thoughts on this?
It's an idea we're working on with some quite serious blue chip partners, it's a natural extension to a lot of the work we're doing and many people have asked for it. But it's still very much in the idea phase and not the current priority. So I won't set a date on it. It could be years away, and it might never happen.
The whole team is focused on building the best possible toolbox for DIY investors. That will take until 2020 to fully realise. I won't stop until I've the capacity to run and manage all my own family portfolios through Stockopedia with just a few clicks - hopefully that will help others too. If we end up running or advising ETFs, then great, but it's not the core focus when our team is small.
People think focus means saying yes to the thing you've got to focus on. But that's not what it means at all. It means saying no to the hundred other good ideas that there are. You have to pick carefully. Steve Jobs
If too much money goes into buying high Stockrank shares via ETFs or other funds, would that eventually drive the prices of those shares up to levels where they would no longer be likely to out-perform the market as a whole in later periods?
Possibly, but I wouldn't worry too much about Stocko's own impact: there's quite a few billions out there managed following Stockrank-style principles, so a few millions in a Stocko ETF would not make a major difference.
Besides, people still have an opportunity to mis-time getting in and out of such instruments, which helps limit (or reverse!) the crowding effect.
I think buying shares in some smaller companies would be difficult, some that come up on NAPS selection are hard to trade in amounts as low as £2k. Not sure how a fund would be able to buy those type of shares and yes if they did it would affect the price.
You'd have to have a size/liquidity cap. I doubt it would be a NAP idea but owning the whole decile (subject to constraints like liquidity.)
The hard part would be if you wanted to make it market neutral by shorting the lowest decile. These do tend to be companies that you'd struggle to get borrow on in size.
