In the following interview Oren Kaplan, the CEO of SharingAlpha, explains what the new firm is all about and why it is important to the wealth management industry.
MyPrivateBanking: Oren, can you explain the idea behind “SharingAlpha” in a few words?
Oren Kaplan: SharingAlpha is a user generated fund rating platform, or in other words, it’s where Morningstar meets TripAdvisor! SharingAlpha will also rank the fund raters in terms of their fund selection capabilities which will allow fund selectors and investment advisors to build their own proven track record. The users will also be able to construct a number of virtual fund of funds and SharingAlpha will rank them according to their asset allocation performance.
MPB: Why do you think that the collective fund ratings of investment advisors offer valuable insights given that we all have seen over and over againg that more than 80% of active fund managers are collectively not beating simple index strategies?
OK: Funds will receive a high SharingAlpha rating only when the different raters expect the fund to beat the passive alternative. Predictions based on collective wisdom have been proven to work in plenty of cases. Furthermore, qualitative fund analysis - using for example factors such as cost, capacity and active share - have also been proven to work and using a large group of market experts will make this task possible.
MPB: Is SharingAlpha also interesting for afffluent and high-net-worth investors?
OK: Yes, the fund ratings and raters ranking will certainly be followed by all types of investors.
MPB: How can the private banking industry take advantage of SharingAlpha’s offer?
OK: Number one, to improve fund selection and asset allocation recommendations based on the collective wisdom that will be shared on SharingAlpha. Number two, to build their track record and prove to clients that they are able to add value to their portfolio and justify their fees.
MPB: Thank you, Oren!