STEPHEN CRANSTON: Sharing Alpha — where the past is negligible and the future open
Ratings programme uses crowdsourcing to rank asset allocators and fund selectors
More than any other industry award I can think of, luck plays a huge part in unit trust winners. Beating the peer group is not like building a better bridge, where everything should go according to plan. All the unit trusts awards I have been involved with, such as Micropal, Morningstar and S&P, have been based on recent performance, with a few risk-adjustment tweaks to eliminate the more dysfunctional and inconsistent players. So I was intrigued to see another ratings programme, Sharing Alpha. And it can’t be long before it has its own gala award show. The best description of Sharing Alpha is "where Morningstar meets TripAdvisor". The programme uses crowdsourcing to measure funds. There are some practical problems: while you can be sure the Mount Nelson high tea will look and taste very similar to the way it did 12 months ago, the content of your unit trust portfolio and their returns could have changed substantially.Sharing Alpha founder Oren Kaplan says he is looking to solve two...
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