Addepar launches Investor Sentiment Index

Addepar, a technology platform for wealth management, has launched the Addepar Investor Sentiment Index, an index of high- and ultra-high-net-worth (U/HNW) investor sentiment derived from US equity transactions captured on the Addepar platform. 

The index analyses activity across more than 10,000 portfolios from investors each with more than USD10 million in total assets. 

While traditional investor sentiment readings are derived from survey results, which don’t always accurately represent real investment choices, the Addepar Investor Sentiment Index is based on the true aggregated data of actual transactions. Moreover, existing market movement indices are dollar-weighted, meaning small movements by large players can skew results. Conversely, the Addepar Investor Sentiment Index is equal-weighted, giving a more accurate read of overall investment activity. As a result, for the first time, Addepar clients can leverage timely insights to compare their equity investing decisions with those of their peers on a weekly and monthly basis. 

“Earlier this year, Addepar surpassed USD2 trillion in client assets aggregated on the platform. Using the critical mass of data we have curated, we are meaningfully compounding the value we can bring to Addepar’s clients by complementing our category-defining software with relevant and timely analytic insights,” says CEO, Eric Poirier. “Building on our introduction of Marketplace, which unifies access to desirable financial products that have historically been hard to access and manage efficiently, the Addepar Investor Sentiment Index punctuates Addepar’s ability to provide our clients with a truly unique and differentiated set of offerings to serve their clients and expand their trusted relationships. This new offering is our first of many as we expand our scope to engage with a wider audience. Our broad goal is to empower people everywhere to make more informed, data-driven decisions about their investments, irrespective of market or economic conditions.”

“Addepar has taken a novel approach to measure sentiment. Their preliminary results showing the contrarian investment behaviour of sophisticated investors is striking and worthy of continued attention,” says Professor Chris Geczy, Academic Director of the Jacobs Levy Equity Management Center for Quantitative Financial Research, and Academic Director of the Wharton Wealth Management Initiative, The Wharton School, University of Pennsylvania.

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