Marketocracy's Fund Managers Report Card for 1H16 -> C+

2016 is shaping-up as a good year for Marketocracy's Fund Managers. According to data just released, a majority 58% of managers (15 of 26) are beating the S&P500 benchmark .

The second quarter was particularly strong for managers as they averaged returns of 4.51% verses 1.90% for the S&P500 index.

However on average managers lagged the performance of the S&P500 over the first half of 2016. Managers returned 0.92% vs 2.69%.


The best performing 2016 Marketocracy managers:
#1 Bruce Pile with 27.77%    (@ a 15yr annual return of 7.5%)
#2 Chris Rees with 19.11%   (@ a 15yr annual return of 8.2%)
#3 Rex Jacobsen with 13.94%   (@ a 14yr annual return of 11.2%) 



The best long-term Marketocracy performers (since their fund inception):
#1 Todd Hagopian (28.0% annual return over 5 years)
#2 Justin Uyehara  (25.6% annual return over 13 years)
#3 Sam Miklosko  (20.8% annual return over 7 years)



Below is a detailed look at all the managers' 2016 performances:

My Fund:
My small-cap focused Healthcare Fund is performing poorly year to date. I am at the bottom of the rankings list, highlighted in yellow.

My fund is down a large 34.45% ytd. It lags the returns of equivalent benchmarks such as the IBB down 20% and the XBI down 18%. My fund's longer-term performance remains strong having returned 10% annualized over the past 10 years.

The recent biotech sector sell-off had a very adverse affect on my fund. I primarily hold small-cap stocks which unfortunately were among the worst affected in the sell-off. Heavy losses from my larger core-holdings also significantly contributed to my under-performance. My positions in Northwest Biotherapeutics (NWBO) and TG Therapeutics (TGTX) fell 94% and 61% respectively over the past 12 months.

I continue to hold both these stocks because I believe their recent sell-off was over-done and the stocks are now under-valued. Both stocks have late-stage cancer treatment candidates that offer tremendous promise with block-buster market potential. Important catalysts, later this year, have the potential to sharply shift investor sentiment in both of these stocks.  

The biotech sector is showing signs of a recovery which is encouraging. I remain optimistic about being invested in this space despite the rocky past 12 months. Over the longer-term I believe this sector will continue to be prosperous.



Disclosure - Marketocracy Funds are available for investment through SMAs.
I do not short stocks.