Wisdom of some crowds: Predicting investors success in a social trading platform

Yael Karlinsky; Shimon Kogan; Barak Libai; V.B. Schoenmueller

Wisdom of some crowds: Predicting investors success in a social trading platform

Yael Karlinsky, Shimon Kogan, Barak Libai, V.B. Schoenmueller

Research output: Conference paper › Contribution

Abstract

Using data from a social-trading platform in which users allocate funds to investment "gurus" by following them, we identify a group of followers who systematically make following decisions that generate higher-than-average returns and maintain a higher-than-average investment portfolio consistently over time. The oracle followers strategy generates higher returns than other investment strategies such as following a the most popular gurus or following gurus randomly. We find that oracle are more diverse followers, make following decisions more frequently and have a longer life-time in the platform.

Original language	English
Publication status	Published - 7 Jun 2023
Event	45th ISMS Marketing Science Conference 2023 - Miami, United States Duration: 7 Jun 2023 → 10 Jun 2023

Conference

Conference	45th ISMS Marketing Science Conference 2023
Country/Territory	United States
City	Miami
Period	7/06/23 → 10/06/23

Cite this

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title = "Wisdom of some crowds: Predicting investors success in a social trading platform",

abstract = "Using data from a social-trading platform in which users allocate funds to investment {"}gurus{"} by following them, we identify a group of followers who systematically make following decisions that generate higher-than-average returns and maintain a higher-than-average investment portfolio consistently over time. The oracle followers strategy generates higher returns than other investment strategies such as following a the most popular gurus or following gurus randomly. We find that oracle are more diverse followers, make following decisions more frequently and have a longer life-time in the platform.",

author = "Yael Karlinsky and Shimon Kogan and Barak Libai and V.B. Schoenmueller",

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AU - Karlinsky, Yael

AU - Kogan, Shimon

AU - Libai, Barak

AU - Schoenmueller, V.B.

PY - 2023/6/7

Y1 - 2023/6/7

N2 - Using data from a social-trading platform in which users allocate funds to investment "gurus" by following them, we identify a group of followers who systematically make following decisions that generate higher-than-average returns and maintain a higher-than-average investment portfolio consistently over time. The oracle followers strategy generates higher returns than other investment strategies such as following a the most popular gurus or following gurus randomly. We find that oracle are more diverse followers, make following decisions more frequently and have a longer life-time in the platform.

AB - Using data from a social-trading platform in which users allocate funds to investment "gurus" by following them, we identify a group of followers who systematically make following decisions that generate higher-than-average returns and maintain a higher-than-average investment portfolio consistently over time. The oracle followers strategy generates higher returns than other investment strategies such as following a the most popular gurus or following gurus randomly. We find that oracle are more diverse followers, make following decisions more frequently and have a longer life-time in the platform.

M3 - Contribution

T2 - 45th ISMS Marketing Science Conference 2023

Y2 - 7 June 2023 through 10 June 2023

ER -

Wisdom of some crowds: Predicting investors success in a social trading platform

Abstract

Conference

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