The Explore model seeks to generate a total return that beats the S&P 500 index. It typically will take on above-average market risk. However, the risk is spread across at least three separate investment strategies, each chosen from Marketocracy’s m100 list by the firm’s CEO, Ken Kam.
The investment model seeks a mix of value, growth, and other strategies that have little holdings overlap. The approach seeks to reduce the impact of a single manager’s underperformance becoming a drag on the portfolio. Managers that are lagging the S&P 500 index – either due to poor stock selection or because their approach is out of favor – will be replaced based on the evaluation process of Marketocracy CEO Ken Kam.
Managers will leverage various scanning and screening methodologies in their research, as well as their own firsthand experiences.
The portfolio is rebalanced at least annually to Marketocracy CEO Ken Kam's recommended weights for the individual strategies of each Marketocracy manager on the model investment team. Additional rebalancing may occur whenever there is a manager change.
Individual managers will be given discretion to sell stocks for either valuation, technical or fundamental concerns, or if he or she believes that there is a superior replacement.Individual managers will be replaced if he or she is underperforming, and if Marketocracy CEO Ken Kam decides that there is a better replacement based on his evaluation process.
A decision to seek a replacement manager may be deferred if the source of stock underperformance is related to company-specific events that have yet to materialize.
Past performance is no guarantee of future results.
Performance of the portfolio manager's account is calculated by Covestor on a daily time-weighted basis, including cash, dividends and earnings distributions and broker commissions. Manager returns include trades and positions that fail Covestor's trading rules, as a result, actual client returns will differ. Covestor advisory fees are simulated and applied retro-actively to present the portfolio return "net-of-fees".
Average client returns are calculated by Covestor and are composed of the asset-weighted average returns of all active client investments (some of which may contain investment restrictions) to the underlying portfolio. These daily average returns are then linked together for the timeframe presented. These returns include cash, dividends, earnings distributions, brokerage commissions and Covestor advisory fees.
All graph data is as of the end of day for the referenced period, unless otherwise specified. The investment minimum is the minimum investment required to follow a particular portfolio. The minimum amount is determined by Covestor, based on the characteristics of the underlying portfolio. It should not be considered as specific investment advice for your investment situation.
The performance charts are provided for informational purposes only, and should not be used as the basis for making an investment decision. Variables such as corporate actions or foreign exchange may affect daily performance displays. We rely on mathematical formulas, computer programs, and pricing information from third-party vendors to provide these returns. Neither Covestor nor any of its data or content providers shall be liable for any errors in this information or any actions taken by you in reliance upon this information.
Benchmark returns have been calculated by Covestor using a time-weighted calculation of daily index valuations. Benchmarks presented are total return and therefore inclusive of cash, dividends and earnings distributions but not transaction costs.
Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value.
All Portfolio Manager information including personal data, profiles, strategies, monthly investment reports, and historical results outside of Covestor has been provided by the Portfolio Manager. Covestor makes no representation or warranty of its accuracy, completeness or relevance and it does not represent the opinions of Covestor. Transaction history is available upon request. Portfolio classifications are provided by Covestor, and are intended to serve as a general guide.
Transactions that are marked as "Replicable" passed Covestor's trading rules and were eligible for replication at the time of execution, subject to individual
client constraints. Eligibility for replication may change over time. Actual client investment trade activity may vary.
Index returns do not reflect any management fees, transaction costs or expenses. Individuals cannot invest directly in an Index.