Marco. Polo.
A place at your local rec center where a lot of accidents take place. It's also a type of investment fund.
A bunch of people get together and decide they're going to invest together. They set up a partnership, and everyone cuts a check. Now there's a large pool of money to invest. But they never really decided what to invest in.
This situation represents a blind pool. It's a bunch of money that gets gathered together, but with no specific investment goal in mind (at least at the outset).
So why would anyone do it? Sometimes it has to do with the person putting together the fund. It could be a famous investor, or a new fund formed by a well-established firm.
Cousin Jack is a wizard at finance. So, we'll just give him a few thousands of dollars to invest for us...we just want to piggyback on his stock picks. Aunt June, Uncle Perry, Mom, and Elsa Jean all do the same thing. We've just set up a blind pool for Cousin Jack. We don't know what he'll do with the money, but we have a lot of confidence that he'll do a good job.
Related or Semi-related Video
Finance: What is pooling: investment/int...3 Views
Finance allah shmoop what is pooling Well it's aggregating no
no aggregating yeah Throwing in cash together partnering pooling interests
in an investment simply refers to two or more players
getting together to invest their money in whatever form mutual
funds are are pooled investment So our index funds hedge
fund bond funds etfs reads mlps any uh pretty much
and well every other investment vehicle that can scale to
allow for two or twenty or two million investors to
all come together and invest well Why would people want
to do this scale or rather synergies of costs from
scale Whether you have one investor or ten thousand you
need to file papers and there are usually pretty much
always lawyers involved and accountants and other wall street gum
sucking gadflies and the marginal additional cost of servicing ten
thousand pooled investors is only somewhat more than servicing won
So in many cases pooling makes a lot of sense
when investors interests are generally aligned and when they're not 00:01:07.229 --> [endTime] around there's trouble
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