Have you ever wondered why fund managers do so poorly – well here is your answer. It is because they spend their day trawling internet forums to come up with ideas.
At long last, the Reddit retail investors may finally be enjoying their day in the sun: Major institutional investors are taking note of what they do — and they’re making investment decisions based on it.
A new survey shows that 58 percent of the institutional investors polled have made an investment decision based on information they found on Reddit.
Since 2020, when retail trading began to take off, the social media forum site has become a haven for retail traders interested in both meme stocks like AMC and plain vanilla passive investing.
The Brunswick Group surveyed 257 institutional investors in North America, the United Kingdom, and the European Union about how they use social media and other digital tools to inform their investment decisions. The majority of the respondents — 94 percent — were either portfolio managers or buy-side analysts.
More here – Institutional Investor