The Masters 100 Fund (MOFQX)
Performance & Portfolio Discussion
Dear Shareholder:
As of the end of 2009, The Masters 100 Fund is up 27.57% for the year, 1.11% ahead of the S&P 500 index which is up 26.46%. If you look at the performance of the Fund quarter by quarter, you can see that the analyst team we are using for our fund has delivered both good performance and good protection throughout a chaotic year.
In the first quarter, when the S&P 500 fell 11.01%, the Masters 100 Fund fell just 2.45%. Yet, when the market turned around gaining 15.93% in the 2nd quarter, the Fund gained 13.72%. The Fund captured nearly all of the upside in the 2nd quarter while avoiding nearly all of the downside in the 1st quarter. This continued in the 3rd quarter when the market gained 15.61% and the Fund rose 13.75%.
In the 4th quarter, when the bankruptcy of CIT threatened to abruptly end financing for thousands of small businesses across the country, the team turned defensive. At one point, the Fund raised cash and utilized inverse-ETFs to reduce overall market exposure to less than 50%. If CIT's bankruptcy had triggered a market meltdown similar to the one triggered by Lehman Brothers last year, these steps would have provided our Fund a significant amount of protection. Even with these protective positions, the Fund gained 1.09% in the 4th quarter but lagged the S&P 500 by 4.95%.
The analysts on our research team were selected because they all have long-term track records showing that they can deliver good returns and take protective action at the right times. In 2009, they delivered exactly what we needed. The Fund beat the S&P 500 for the year by delivering good performance when the S&P 500 was rising and good protection when the S&P 500 was falling. It's a hard combination to achieve, and it is making a difference!
The analysts we selected from the m100 were chosen because their track records showed they have taken protective action by moving to cash, changing sector allocations, or using inverse ETFs at the right times. We call them the SWAN Team. In my view, they have done a terrific job for us so far this year.
Sincerely,
Ken Kam
Portfolio Manager
Marketocracy Masters 100 Fund
Performance & Portfolio Discussion
Dear Shareholder:
As of the end of 2009, The Masters 100 Fund is up 27.57% for the year, 1.11% ahead of the S&P 500 index which is up 26.46%. If you look at the performance of the Fund quarter by quarter, you can see that the analyst team we are using for our fund has delivered both good performance and good protection throughout a chaotic year.
In the first quarter, when the S&P 500 fell 11.01%, the Masters 100 Fund fell just 2.45%. Yet, when the market turned around gaining 15.93% in the 2nd quarter, the Fund gained 13.72%. The Fund captured nearly all of the upside in the 2nd quarter while avoiding nearly all of the downside in the 1st quarter. This continued in the 3rd quarter when the market gained 15.61% and the Fund rose 13.75%.
In the 4th quarter, when the bankruptcy of CIT threatened to abruptly end financing for thousands of small businesses across the country, the team turned defensive. At one point, the Fund raised cash and utilized inverse-ETFs to reduce overall market exposure to less than 50%. If CIT's bankruptcy had triggered a market meltdown similar to the one triggered by Lehman Brothers last year, these steps would have provided our Fund a significant amount of protection. Even with these protective positions, the Fund gained 1.09% in the 4th quarter but lagged the S&P 500 by 4.95%.
The analysts on our research team were selected because they all have long-term track records showing that they can deliver good returns and take protective action at the right times. In 2009, they delivered exactly what we needed. The Fund beat the S&P 500 for the year by delivering good performance when the S&P 500 was rising and good protection when the S&P 500 was falling. It's a hard combination to achieve, and it is making a difference!
SWAN Team
To view the track records of the SWAN team analysts at www.marketocracy.com.
[ CLICK HERE ]
You will be leaving this website.
Sincerely,
Ken Kam
Portfolio Manager
Marketocracy Masters 100 Fund
Performance Summary as of December 31, 2009
Cumulative
Returns |
Masters
100 Fund |
S&P 500
with Dividends |
Difference
|
||
|---|---|---|---|---|---|
Year to date
|
27.57%
|
26.46%
|
1.11%
|
||
Q4-2009
|
1.09%
|
6.04%
|
-4.95%
|
||
Q3-2009
|
13.75%
|
15.61%
|
-1.86%
|
||
Q2-2009
|
13.72%
|
15.93%
|
-2.21%
|
||
Q1-2009
|
-2.45%
|
-11.01%
|
8.56%
|
||
Average Annual
Returns |
Masters
100 Fund |
S&P 500
with Dividends |
Difference
|
||
|---|---|---|---|---|---|
1-Year
|
25.57%
|
26.46%
|
1.11%
|
||
3-Year
|
-10.11%
|
-5.63%
|
-4.48%
|
||
5-Year
|
-1.05%
|
0.42%
|
-1.47%
|
||
Since Inception - 11/5/01
|
2.95%
|
2.10%
|
0.85%
|
||
For performance information current through the most recent quarter-end, click here.
The Standard & Poors 500 Index is comprised of 500 selected common stocks most of which are listed on the NYSE.
The above indices are unmanaged and cannot be invested in directly. Returns for the above indices and the Fund assume reinvestment of dividends and distributions. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Returns assume reinvestment of dividends and distributions. Performance data quoted represents past performance. Past performance is not a guarantee of future results. Investment returns and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, click here. The Fund’s total expense ratio was 2.10% (including 1.95% management fee paid to the adviser, and 0.15% for acquired fund fees and expenses) as of October 28, 2008.
Principal risks associated with an investment in the Fund include Stock Selection risk, Small and Medium Companies risk, Foreign Investment risk, and Internet Reliance risk. The Fund can invest in small and medium sized companies, which are often more volatile and less liquid than larger, more established companies and therefore increase the volatility of the Fund’s portfolio. The strategies used by the Fund’s investment adviser in selecting Fund’s portfolio may not always be successful.
The investments may decline in value or not increase in value when the stock market in general is rising. Investments in foreign securities entail risks not present in domestic investments including, among others, risks related to political or economic instability, currency exchange, and taxation. Operation of Marketocracy.com’s website depends on the continued availability of the Internet, both short- and long-term. Significant failures of the Internet could lead to interruptions or delays in the Fund’s investment adviser’s ability to manage the Fund’s portfolio.
The m100 group, upon whose research the Masters 100 Fund’s portfolio manager relies in managing the Fund, is comprised of individuals who may be amateur investors, not investment professionals, and are not employees of the Fund or its adviser. Their track records are based on the performance of a simulated stock portfolio on the website www.marketocracy.com.
Marketocracy Funds advises investors to carefully consider the investment objectives, risks, and charges and expenses associated with the Fund prior to investing. The Fund’s prospectus contains this and other information about the Fund. To obtain a prospectus containing more complete information about the Fund, including fees and expenses, click here. Please read the prospectus carefully before investing.
Distributor: Rafferty Capital Markets, LLC
Date of first use: February 24, 2010
The Standard & Poors 500 Index is comprised of 500 selected common stocks most of which are listed on the NYSE.
The above indices are unmanaged and cannot be invested in directly. Returns for the above indices and the Fund assume reinvestment of dividends and distributions. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Returns assume reinvestment of dividends and distributions. Performance data quoted represents past performance. Past performance is not a guarantee of future results. Investment returns and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, click here. The Fund’s total expense ratio was 2.10% (including 1.95% management fee paid to the adviser, and 0.15% for acquired fund fees and expenses) as of October 28, 2008.
Principal risks associated with an investment in the Fund include Stock Selection risk, Small and Medium Companies risk, Foreign Investment risk, and Internet Reliance risk. The Fund can invest in small and medium sized companies, which are often more volatile and less liquid than larger, more established companies and therefore increase the volatility of the Fund’s portfolio. The strategies used by the Fund’s investment adviser in selecting Fund’s portfolio may not always be successful.
The investments may decline in value or not increase in value when the stock market in general is rising. Investments in foreign securities entail risks not present in domestic investments including, among others, risks related to political or economic instability, currency exchange, and taxation. Operation of Marketocracy.com’s website depends on the continued availability of the Internet, both short- and long-term. Significant failures of the Internet could lead to interruptions or delays in the Fund’s investment adviser’s ability to manage the Fund’s portfolio.
The m100 group, upon whose research the Masters 100 Fund’s portfolio manager relies in managing the Fund, is comprised of individuals who may be amateur investors, not investment professionals, and are not employees of the Fund or its adviser. Their track records are based on the performance of a simulated stock portfolio on the website www.marketocracy.com.
Marketocracy Funds advises investors to carefully consider the investment objectives, risks, and charges and expenses associated with the Fund prior to investing. The Fund’s prospectus contains this and other information about the Fund. To obtain a prospectus containing more complete information about the Fund, including fees and expenses, click here. Please read the prospectus carefully before investing.
Distributor: Rafferty Capital Markets, LLC
Date of first use: February 24, 2010