Abstract
Social trading platforms offer their users an innovative form of delegated portfolio management. Users have the opportunity as so-called traders to share their investment strategies with followers through the platform. Based on comprehensive empirical data of 183 investable portfolios of the social trading platform “Wikifolio”, this study provides new insights on the return and risk characteristics of different types of investors: portfolios of private individuals can achieve significantly higher returns and better risk-return ratios than the portfolios of media companies and professional asset managers. The differences in portfolio yield and risk characteristics could be based on selection and market timing effects.
Published Version
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