I suspect that in addition to the TER, there are also transaction fees that make the whole thing run at 2%. Which would even be understandable. And you have to trust the person who implements the wikifolio. Or have enough knowledge and time to implement the strategy yourself.
I suspect that if you are good, you could do something similar in private equity and crowd funding. High returns are possible due to a lack of market efficiency. However, without advanced knowledge of technology or finance, you are on slippery ground. Difficult to diversify and control at the same time. Of course, a wikifolio with a trading volume of over 10k shares has opportunities. But if too many people follow the wikifolio, the effect will probably fizzle out quickly, as the wikifolio itself will arbitrage away the inefficiencies, right? (All hypothesis)
I suspect that if you are good, you could do something similar in private equity and crowd funding. High returns are possible due to a lack of market efficiency. However, without advanced knowledge of technology or finance, you are on slippery ground. Difficult to diversify and control at the same time. Of course, a wikifolio with a trading volume of over 10k shares has opportunities. But if too many people follow the wikifolio, the effect will probably fizzle out quickly, as the wikifolio itself will arbitrage away the inefficiencies, right? (All hypothesis)
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@SchlaubiSchlumpf Yes, the strategy must not become too big, but we are talking about 25 positions that are invested in every year. A few million have to flow into it.
Of course, there is also manager risk, which is why I would never invest more than 2% in a wikifolio. However, the managers do have an incentive to perform.
But this particular wikifolio is now managed by someone who seems quite qualified:
https://www.linkedin.com/in/felix-begun-3a7913ba/
Of course, there is also manager risk, which is why I would never invest more than 2% in a wikifolio. However, the managers do have an incentive to perform.
But this particular wikifolio is now managed by someone who seems quite qualified:
https://www.linkedin.com/in/felix-begun-3a7913ba/
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@PowerWordChill Relatively serious. (I had to create a Linked-in profile especially for this). In any case, the strategy is highly interesting. Presumably it also provides an opportunity for others to look for treasures within nanocaps themselves. The problem is, of course, that there is a lot of junk.
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