A Spoke Fund® is a group of separate investor accounts linked to a portfolio containing most of the liquid net worth of that fund’s manager.
“Spoke Fund®” is short for “hub and spoke” model. The portfolio manager’s money is the hub and the spokes lead to each investor’s account. Any changes in the hub are simultaneously made in the spoke accounts. Thanks to technology, this can all be done pretty easily.
The result is a much more investor-friendly alternative to a mutual fund. It’s also a heckuva lot easier for a portfolio manager to run than any other kind of fund – or separately managed accounts.
As an investor in a Spoke Fund®, you know your portfolio manager is investing in the same stocks you are – at the exact same prices. He eats his own cooking. She has skin in the game. Pick your analogy – the point is that the portfolio manager is in it together with his or her investors.
Which is really kinda how it should be, don’t ya think?