"Your financial future depends on the investing skills of the people you choose to help you manage your money.
Do you have the right people?"
Ken Kam
President & CEO
Searching For Skilled Investors
A good track record does not guarantee future results. After all, even skilled investors do not make money all the time and in every market. But, does it ever make sense to follow the advice from someone with no track record, or worse, a bad track record?
If you are evaluating someone to assist you with your investments it still makes sense to look for someone with a superior long-term track record. In our view, it takes at least a 5 year track record before you can begin to judge an investor’s skill.
It is surprising how few people in the investment industry can show you a 5 year track record. Only about 16% of mutual funds have had the same manager for 5 or more years (Source: Morningstar). When a mutual fund changes managers, the fund’s long-term track record no longer reflects the skill of the current manager. If you don’t know the current manager’s track record, it’s impossible to say whether the next Warren Buffett is managing your money, or someone who is unproven.
We started Marketocracy to let managers, analysts, and everyone else establish their own track record so we could identify the skilled investors we all want to have managing our money. We do this through a website that enables anyone to manage a model portfolio that is priced each day as if it were a mutual fund. The big difference? The manager that started the fund's track record is the same one managing it today.
Since we started, more than 100,000 people have set up a model portfolio. There are now over 30,000 whose track records are more than 5 years old, and we have signed research contracts with about 500 whom we consider to be the most skilled. We use this unique pool of investing talent to manage money for clients who want to beat the market.
Our mutual fund is designed for the core of your portfolio where reducing risk through diversification has a higher priority than maximizing returns. To manage a core fund, we select what we believe will be the right team at the right time – we call them the m100. Of course, we’re not perfect and the world can change quickly so when that happens, we adjust the team. The breadth and depth of our bench of talent, our insight on their strengths and weaknesses, and the flexibility we have in managing our team gives us a tremendous advantage for correcting our mistakes and changing our team to meet the opportunities the market gives us.
Our mFOLIOs are designed for the explore portion of your portfolio where maximizing returns is more important than reducing risk. mFOLIO Masters are m100 members that we have evaluated enough that we believe their model portfolio can stand alone. mFOLIOs are professionally managed portfolios that give you access to the best at Marketocracy through a managed account at FOLIOfn.