Reputation-based Idea-Futures-style investing

from the talk-about-"Group-Genius"(TM) dept.
Senior Associate Charles Vollum writes "When I entered the Mutual Minds web site, I thought I'd been transported to the world of Earth Web…A mutual fund whose stocks are selected by the best forecasts of its investors. According to the FAQ, "Participants visit the site and predict future stock prices. Over time, forecasts are compared against actual stock prices and each participant earns a score that reflects their historical performance. A computer model combines the forecasts from all participants that are invested in the fund based on their scores. The combined forecasts determine the investments for the fund (those with the highest risk adjusted return potential). The forecasts are used by a portfolio optimizer similar to those used by fund managers today to determine what % should be invested in each security. The result is a well-diversified portfolio consisting of the preferred investments of the community." CV: It will be interesting to see how this works out."

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