CV.IM - A New Kind Of Investment Management Account

Our portfolio company Covestor launched a new kind of investment account today, called Covestor Investment Management (CV.IM).

I had written a longish blog post explaining why I think this is so interesting and explaining how I've been been a beta tester/investor for the past couple months and how I am doing. But investment management is a regulated business and the lawyers didn't like my post. So I am going to link out to others instead.

Covestor has a post on CV.IM. Here's how they describe CV.IM:

The world’s first retail Multi Managed account or MMA. With an MMA you can invest directly alongside professional and retail investors, managing their own money in their own account. It is a new category of Investment product that gives you access to expert managers like a hedge fund with the security and transparency of a managed account.

Techcrunch has a post on CV.IM. Here's what they say:

Each of the ten “portfolio managers” are trading for their own accounts. They never hold any of your money. CVIM merely links their trading data to a brokerage account you set up either with TD Ameritrade or Interactive Brokers. You select which accounts you want to follow, and CVIM automatically instructs the linked brokerage account to mimic the trades in proportional amounts.

And my partner Albert, who sits on Covestor's board has a post on CV.IM. Here's what he says:

When we invested in Covestor it was in part because of the fit with our “Power to the People” thesis:

To us, this appears to be one of the great constants of the web. It is taking power away from existing large institutions and pushing it out to smaller entities and often all the way to individuals.

In the case of Covestor the institutions in question are large investment management firms and the individuals are people who are investing their own money.

This is a new and different approach to investment management. I am thrilled to be able to participate in it as both an investor in Covestor and an investor in CV.IM.