Comments on: kaChing goes kaching with new money management fxn http://newrulesofinvesting.com/2009/10/19/kaching-goes-kaching-with-new-money-management-fxn/ where investment businesses grow Mon, 21 May 2012 04:44:00 +0000 hourly 1 http://wordpress.org/?v=3.1 By: At one year mark, kaChing grows up | New Rules of Investing http://newrulesofinvesting.com/2009/10/19/kaching-goes-kaching-with-new-money-management-fxn/comment-page-1/#comment-1085 At one year mark, kaChing grows up | New Rules of Investing Tue, 19 Oct 2010 20:32:40 +0000 http://newrulesofinvesting.com/?p=1859#comment-1085 [...] their portfolios.  At the end of last year, kaChing left the more democratic model behind and emerged as a fully-licensed investment advisor providing individual investors with a self-service investing platform populated with smaller, hard [...] [...] their portfolios.  At the end of last year, kaChing left the more democratic model behind and emerged as a fully-licensed investment advisor providing individual investors with a self-service investing platform populated with smaller, hard [...]

]]> By: marketfolly http://newrulesofinvesting.com/2009/10/19/kaching-goes-kaching-with-new-money-management-fxn/comment-page-1/#comment-652 marketfolly Wed, 28 Oct 2009 14:46:37 +0000 http://newrulesofinvesting.com/?p=1859#comment-652 Ahh yea very true re: using multiple platforms anyway if you're a manager. That makes the most sense to spread your potential 'follower' base around. Also good point on the # and quality of members as the site that builds up the most diverse base of investors then in turn offers the most enticing model to potential managers. Definitely two sides to look at it from (manager vs investor) and I'm sure both have been taken into account by the companies. Ahh yea very true re: using multiple platforms anyway if you're a manager. That makes the most sense to spread your potential 'follower' base around. Also good point on the # and quality of members as the site that builds up the most diverse base of investors then in turn offers the most enticing model to potential managers. Definitely two sides to look at it from (manager vs investor) and I'm sure both have been taken into account by the companies.

]]> By: newrulesofinvesting http://newrulesofinvesting.com/2009/10/19/kaching-goes-kaching-with-new-money-management-fxn/comment-page-1/#comment-651 newrulesofinvesting Wed, 28 Oct 2009 10:22:27 +0000 http://newrulesofinvesting.com/?p=1859#comment-651 Great points. I don't think the endgame is necessarily merger -- I think the online brokers (perhaps some of the newer entrants) might find this model would work well with their existing platforms. % of fees is definitely one of the levers that CVIM and kaChing have, though not the only. They are playing match maker -- the most important thing in my mind is actually the quality of user/investor. If one proves a better environment to raise funds, asst mgrs will need to pay to play. Again, if you're managing a portfolio anyway, i don't see a lot of reason not to be on multiple platforms. Offline, in the SMA world, there is so much regulatory requirements behind portfolio mgmt as well as reporting work that it's onerous to participate in multiple technology platforms. The mirroring approach -- used by both CVIM and kaChing -- is more scalable for smaller managers. Great points. I don't think the endgame is necessarily merger — I think the online brokers (perhaps some of the newer entrants) might find this model would work well with their existing platforms. % of fees is definitely one of the levers that CVIM and kaChing have, though not the only. They are playing match maker — the most important thing in my mind is actually the quality of user/investor. If one proves a better environment to raise funds, asst mgrs will need to pay to play. Again, if you're managing a portfolio anyway, i don't see a lot of reason not to be on multiple platforms. Offline, in the SMA world, there is so much regulatory requirements behind portfolio mgmt as well as reporting work that it's onerous to participate in multiple technology platforms. The mirroring approach — used by both CVIM and kaChing — is more scalable for smaller managers.

]]> By: marketfolly http://newrulesofinvesting.com/2009/10/19/kaching-goes-kaching-with-new-money-management-fxn/comment-page-1/#comment-650 marketfolly Wed, 28 Oct 2009 02:24:25 +0000 http://newrulesofinvesting.com/?p=1859#comment-650 interesting stuff as I was just looking at the different biz models between the two and they're pretty similar. Ultimately they merge? <br><br>One major difference I've noticed (or at least I think I've understood this right) is the incentives for the manager themselves. CVIM pays the manager half of the mgmt fee and they pocket the other half. Kaching it appears gives the manager .75% of the mgmt fee and only takes .25%<br><br>I honestly think the 'winner' in this battle will be the one who has the best managers to follow. And, as a function of that, they will need to adequately pay their managers and give them incentive to use them over the other service.<br><br>Will be fun to watch the developments. interesting stuff as I was just looking at the different biz models between the two and they're pretty similar. Ultimately they merge?

One major difference I've noticed (or at least I think I've understood this right) is the incentives for the manager themselves. CVIM pays the manager half of the mgmt fee and they pocket the other half. Kaching it appears gives the manager .75% of the mgmt fee and only takes .25%

I honestly think the 'winner' in this battle will be the one who has the best managers to follow. And, as a function of that, they will need to adequately pay their managers and give them incentive to use them over the other service.

Will be fun to watch the developments.

]]> By: The song remains the same Abnormal Returns http://newrulesofinvesting.com/2009/10/19/kaching-goes-kaching-with-new-money-management-fxn/comment-page-1/#comment-637 The song remains the same Abnormal Returns Tue, 20 Oct 2009 02:33:26 +0000 http://newrulesofinvesting.com/?p=1859#comment-637 [...] of attention being heaped upon kaChing including the New York Times, GigaOM, Technologizer and the New Rules of Investing. This service provides investors with some beneifts including performance measurement, transparency [...] [...] of attention being heaped upon kaChing including the New York Times, GigaOM, Technologizer and the New Rules of Investing. This service provides investors with some beneifts including performance measurement, transparency [...]

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