Cake Financial

I’ve been test driving Cake Financial for the last couple weeks. Cake Finance downloads data from your brokerage accounts for analysis. I think of it as the investment-focused relative of Yodlee. Cake Financial also ranks all users and creates a composite portfolio (CAKEDEX) from the top performing members and provides a social network to discuss securities, much like Motley Fool CAPS does.

The good

• Clear presentation of data and clear description of methodology
• Money-weighted performance metric, much more relevant to me than time-weighted or absolute rate of return
• Risk evaluation. Too many investment sites ignore this important measurement. To me this could become a hugely useful feature. Why not display the actual numbers for volatility, co-variance, etc wrt index of my choice (S&P)

The bad

• Does not recognize certain transactions like options trades. My reported risk and returns do not account for the options trading I started to do in my Roth IRA (the green line)
• Relatively few features. It feels like there are only a handful of things I can do right now. A handful of incredibly useful things, but still not enough for me to play around with.

Overall, I recommend this site and think everyone should give it a try. Individually checking all my accounts at various financial institutions takes a long time, but more significantly, presents me with a it disjointed view of my portfolio. It’s nice to have a tool that analyzes all my investments at once. I can see the aggregate risk, allocation and return of my portfolios and