Stake’s analysis: retail investors beating hedge funds, making 35% more profit in 2020

by | Feb 10, 2021

A financial trading platform has analysed internal retail investor and hedge fund data from the HFM, in a bid to discover who came out on top in 2020, a year that saw retail investing surge in popularity. The results show that on average, retail investors made 47% profit last year, almost three times more than hedge funds, whose average performance was 12.3%, and 27.6% more than Equity funds. 

A stock market trading app has analysed internal retail investor and hedge fund data from the HFM to discover who made the most money in 2020, a year where retail investment surged in popularity – in 2019 retail investors accounted for 10% of the market’s trades, in 2020 this doubled to 20% according to Citadel Securities.

US stock market trading platform, Stake, has experienced similarly high growth, acquiring 400% more customers in 2020 compared to the year before, and 75,000 new registrations in the first month of 2021 alone.

In response to this growing trend in investment, Stake analysed its customer performance data in 2020, and compared it to HFM’s hedge and equity fund performance data to find out who made the most money last year.

The results show that on average a retail investor made 47% profit in 2020, almost three times more than a hedge fund, whose average performance was 12.3%, and 27.6% more than Equity funds, who ended the year with 19.4% profit.

In terms of which stocks retail investors traded the most in last year, Tesla, Amazon and Nio topped the market. ‘Green’ companies are maintaining a significant amount of interest, with Tesla and Nio still among the top US stock market trades in 2021, and clean energy ETFs among the most popular thematic funds.

Stake is a financial trading app that gives its traders access to more than 4,000 US stocks and ETFS. It doesn’t charge any commission fees on trades, brokerage or custody. Instead, the pricing structure is simple, it charges a 0.5% FX USD transfer fee on deposits and withdrawals.

Matthew Leibowitz, CEO of Stake, said,

“While the recent volatility and market interest has contributed to our growth, it’s really just the tip of the iceberg of a deeper trend that has been fuelling rapid growth through 2020 and into 2021. More and more retail investors are recognising the incredible opportunity of the US market, one worth $37T and home to some of the world’s largest and most exciting companies. So far this year, 75,000 customers across the globe signed up to Stake and we have seen over 500,000 trades executed totalling over $800 million USD.

“While this has been an unprecedented time for the markets, we expect to see interest in the US market continue to increase and will relentlessly keep pursuing our mission of providing access to the US market to our growing customer base, no matter who they are or where they’re from.”

Related articles

Trending stories

Join our mailing list

Subscribe to our mailing list to receive regular updates!

x