I’ve decided to make this blog about a bit more than biotechnology investing. I’ve added two links to my “mutual funds” at Marketocracy.com on the left. I started these funds on a whim, the long-only fund way back in 2001 and the short-only fund when that option became available on the site back in 2005, before I went off to my stint on Wall Street. Now that I have a bit more time on my hands, I’m working to keep those funds “fresher” with my ideas, and I will try to update their performance and trading in real time, or very close. It’s no secret that I’d like to manage money for real, be it in a fund or as a financial advisor, and I’m rather proud of the fact that these funds have performed well, despite intermittent neglect on my part.
The long-only fund is in the top 20% over the past 5 years, and has outperformed the S&P500 by nearly 7 percentage points annualized since inception in 2001.
The short-only fund has been in the top 30 as recently as 2007, but hasn’t been “compliant” since (my neglect allowed profitable positions to shrink to the point where I had too much cash to comply with the 65% invested rule). Its annualized performance is 9.13% since its 2005 inception, compared to a -4.82% performance in the S&P500, so I have outperformed the simple inverse of the index. Continuing in that regard, even with only 30% short positions in the short fund, the fund has gained over 50% in the past 6 months, again outperforming the decline in the S&P500 (which was -36%).
Overall, if you were to have invested $1M with me in 2001, and then added another $1M for short investing in 2005, you would now have just under $2.8M, including a 1% management fee (automatically calculated at Marketocracy). If you would have bought the S&P when I started the long-only fund, you would now have $813,000, and shorted the S&P when I started the short fund, you would have $1.22M, or just about a wash on your original investments, and behind me by almost $800,000.
Not too shabby in these times for a well-diversified portfolio…
Filed under: Uncategorized
Nice writing. You are on my RSS reader now so I can read more from you down the road.
Allen Taylor