Coattail Investing

Coattail Investing
An investment strategy in which investors mimic the trades of well-known and historically successful investors.

This copycat investing can be very good - why not follow the best? This investing strategy works the best when the money manager or institution being mimicked buys companies with a buy-and-hold mentality. If the manager is buying the company for a short period of time, the delay between the purchase and the release of the information to the public may render the particular purchase a bad one. However, many money managers buy companies with a buy-and-hold mindset.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • coattail investing — A risky trading practice of making trades similar to those of other successful investors, usually institutional investors. Bloomberg Financial Dictionary …   Financial and business terms

  • Sidecar Investment — An investment strategy in which one investor allows a second investor to control where and how to invest the capital. The sidecar investment will usually be used when one of the parties lacks the ability or confidence to invest for themselves.… …   Investment dictionary

  • DAG Ventures — is an American venture capital firm based in Palo Alto, California. It is known as a coattail fund for co investing in later stage private financing rounds alongside more prominent top tier venture funds such as Kleiner Perkins, Sequoia Capital,… …   Wikipedia

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