We’ve noted lately the rush of newfangled ETFs, like the lithium ETF, that will work very well in helping bored stock investors part with their money.
Of course, the rich are also susceptible to dicey but thrilling investments.
The WSJ’s Mary Pilon reports on Platinum Horse Racing Ventures, a typical 2 and 20-charging hedge fund that won’t bet on horse races, but will rather seek to buy undervalued horses, and then flip that for more at a later date.
We wish them the best of luck, but as with wine and art hedge funds, we’re sceptical. Buying and selling horses is not an inefficient, backwater market where participants don’t know how to value what they’ve got, or just value horses for sentimental reasons. It’s fiercely competitive, there’s a tremendous amount of research that goes on, and mis-pricings will be extremely hard to spot.
We hope it does great, but we suspect that for your money, an afternoon “playing the ponies” will bring you more pleasure.
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