Friday, June 19, 2009

Growth Portfolio Closes out 1st Year on Marketocracy.com

Its been a wild and crazy year trying to track my investment concepts on marketocracy.com. On June 19th last year, I decided to start using that site to track my results to provide independent 3rd party verification to potential investors. If I'd known the market would be done 30% in that time period I might have found another job. The year started out with the portfolio underperforming, but it has ended much stronger. Constant reallocation into stocks that would benefit on an eventual rebound has finally paid off. On a relative basis, the Growth Portfolio should exceed the SP500 by 10% points. Not bad, but the results are still disappointing considering a loss that should be around 20%. In the industry we typically compare results to benchmarks, but losing money is losing money not matter how much better then the markets.

I'll have updates this weekend on all 3 Portfolios including the Hedged Growth Portfolio that is up for the 9 month period of tracking. An incredible feat for this market. Long term, the Growth Portfolio should outperform, but the Hedged Growth provides for far less volatility and opportunities for huge out performance in volatile markets.

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