We analyze upside performance as well as downside risk.Marketocracy Capital Management’s mission is to use the research of the Marketocracy Masters to produce results for clients that track closely with the performance of the model portfolios published by Marketocracy Data Services (MDS).
Over nearly a decade, MDS has put 500 individuals under contract, resulting in a unique farm team of research analysts that covers the entire market – all sectors and styles.
Ours is the only such farm system in existence. Marketocracy Masters, selected from the best of the m100 bench of around 500 people, have gone through an intensive five- to ten-year vetting process before we put them to work on MCM client accounts. Seven of our Masters have been recognized by Forbes as the “Warren Buffetts Next Door.”
How We Work
Marketocracy Masters manage model portfolios at MDS that we use to manage money for clients with separately managed accounts.
- Masters are held individually accountable.
- Masters’ portfolios must perform in order for analysts to retain their “Master” status.
- Any Master can be replaced if performance does not meet expectations.
The Team Managers
Under the leadership of MCM founder Ken Kam, our executives create and manage portfolios drawn from our team of analysts. We continually review their work. We carefully track results. We analyze upside performance as well as downside risk. This is how we build the firm.
In Ken’s final year as CEO of Firsthand Funds (1999), assets rose from $1 billion to $8 billion. Ken recognized that tech stocks were not as good an investment at the end of 1999 as they were in 1994 when he started Firsthand’s Technology Value Fund. To prepare for a potential future transition out of tech stocks, Ken made it his mission to recruit and manage the best investment analyst teams possible. After trying to recruit portfolio managers and analysts in the traditional way – reviewing resumes and conducting interviews – he concluded that that process was not identifying people who had superior track records. In fact, few candidates could show him any track records.
Creating a Track Record Database
In an industry where performance is easily measured, why not have a database of individual analyst track records? Couldn’t a database of such performance measurements be the key to recruiting for the best investment team in the industry?
In an industry where performance is easily measured, why not have a database of individual analyst track records? Marketocracy does.
That database did not exist…yet. Ken Kam left Firsthand Funds to found Marketocracy to create such a database, a continually-updated, proprietary resource that gives Marketocracy executives the ability to select analysts with identifiable skills, and then place them on a team that is designed and managed to achieve a client’s objectives