Blind Pool

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.