International Investment reports
TOP TEN FUND SELECTORS REVEALED IN GLOBAL RANKING SCORES
Published 13 September 2021, Mark Battersby
The top 10 ranked fund selectors have been revealed by SharingAlpha in its global ranking of professional fund buyers across the world.
The mostly highly rated fund selectors, compiled by SharingAlpha co-founder Oren Kaplan, are shown below:
SharingAlpha says it is the first user-generated fund rating platform that has become the world's largest fund rating agency in terms of the number of funds analysts contributing to its rating.
"The fact our members determine which funds will be rated, and obviously how they will be rated, solves many issues surrounding potential conflict of interest that are present in the traditional rating industry.
It also offers professional fund buyers a way to improve their career prospects and to complement their fund research activities by leveraging on insights gathered from a large group of specialists.
The greatest advantage that SharingAlpha brings to the market is the possibility to grow to scale more rapidly and effectively. This is done by moving from the current rating model where fund selectors work in silos to a more centralised approach in which their views are shared on a dedicated platform.
Furthermore, we offer professional fund investors and analysts the chance of building a proven track record of their fund selection capabilities."
Until now, only fund managers of listed funds had the possibility of generating a public track record. Now, for the first time, those fund specialists that select fund managers also have an opportunitiy of standing out among their peers. This in turn will enable them to be rewarded according to their proven track record.
This innovative idea - to rank the raters and by doing so offering them enough motivation to share their opinions - has turned SharingAlpha into a real game changer in the industry, it further said.
The ranking methodology
The fund selection ranking is determined by the ability to assess the future performance of the funds relative to the comparable ETF of the fund.
In case the rater expects the fund to outperform the ETF then the overall rating that they should assign to the fund will be over 3. It will be closer to 5 in case they have a strong conviction. Hence, a rating of between 1 and 3 is given to funds that are expected to generate negative alpha and a rating of between 3 and 5 is given to funds that are expected to generate positive alpha.
On a monthly basis SharingAlpha compares the ratings with the actual performance of the fund verses the ETF, the closer the prediction with the actual reality the higher the score they get for this rating.
SharingAlpha call this the Hit Score. They compare the overall average Hit Score of all the Funds rated by the user and compare it to the other users on SharingAlpha.
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