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I have been interested in the market my entire life. From my first equity purchase when I was 15- Chrysler just before the government bailout to managing the portfolio of my father- and outperforming the major indexes with lower risk for over 20 years, I have been attracted to the intellectual and financial challenges of identifying opportunity and making above average returns- again on a risk adjusted basis.
Professionally, I am currently the CFO of a post-start up software development company with a focus on mobile telecom applications. I have served as the CFO,COO, CRO and President of public and private companies. My academic background includes a BS in accounting from the University of Illinois and an MBA in finance and corporate strategy from the University of Michigan. I have CPA and CGMA designations.
Generally, I seek outsized appreciation opportunities with below average risk and often favor stocks that have downside protection through one or more of the following- robust dividend yield, high book value, cash balance or other backstop. I tend to shy away from momentum stocks and those with very high PEs or PEGs.
Lambros Papaeconomou is the Director of NYFEX Equity Research (formerly known as NYFEX Asset Management LLC), an independent equity research practice specializing in the shipping industry. Lambros has over 20 years of work experience in the shipping industry, having worked for Maritime Overseas Corporation, Southern Star Shipping Co., & Mallory Jones Lynch Flynn & Associates. Lambros studied Naval Architecture & Marine Engineering at the National Technical University of Athens. He holds an MBA from the University of California at Berkeley, and is certified as a CPA by the State of Illinois.
Ron Hera, founder of Hera Research, LLC, and the principal author of the Hera Research Newsletter holds a master's degree from Stanford University and is a member of Mensa and of the Ludwig von Mises Institute. A native Californian, Ron is a self described "escapee" from Silicon Valley. Originally a serial entrepreneur and private investor in communications software and mobile technology, Ron turned his attention to investing in hard assets after the dot-com bubble and stock market crash of 2000. When he is not consulting for investors and resource companies, Ron writes articles and focuses on special research projects. Ron's articles have appeared on GoldSeek.com, King World News and in other professional investment venues.
I run a model fund at Ken Kam's Marketocracy, where they do capital management using the best member mutual fund track records with extensive tabulations of alpha, beta, R-squared, and many other fund management evaluations. Marketocracy Capital Management offers SMA (Separately Managed Accounts) through FOLIOfn Institutional ($100,000 minimum accounts) set up to track the top 15 or so long-term track records (many 12 years plus) of the 30000 or so active members that run models at their site. My fund is one of those top models available for SMAs. My SMA investment fund now has a first year performance with double digit alpha. You can see the fund's performance chart at marketocracy.com (the Turtle Fund - symbol BPMF) and there is one in my profile over at TalkMarkets.
My fund methodology is high diversification, usually running around 40-60 stocks from many different sectors. I rarely weight any position much over 5%. I began at Marketocracy developing an analysis method I've labeled The Fractal Base Flow Model. I've been experimenting with variations of my basic methodology with 4 other funds and a 5th where I try new things. With my first and main model fund BPMF (Bruce Pile's Mutual Fund) I did my basic method for the first 7 years or so with an alpha over 30, then strayed a little into other analysis methods that did not work as well. For the SMA, I am using the methods proven to work well.
Marketocracy is a new way of investing that solves a lot of the problems in the industry today. When investors nowadays survey their options, they are perplexed by the mish mash of risk and fees. In mutual funds, you have regulated safety where managers must diversify with less than 10% of your money in any one name in the top of your weightings scheme, making for at least around 20 stocks at any one time. The SEC also prohibits the risk of leverage and investing in dangerous derivatives, etc. But this safety is typically viewed as a tradeoff with performance vs hedge funds, where all the dangerous stuff is allowed. But the sad result of all this danger is that most hedge funds fail. The average life of a hedge fund that makes it past the first year is just 5 years. More than two thirds of all hedge funds that ever existed are now dead. There is the fund of funds option, but the high turnover means that even they must select an all new portfolio of funds about every 5 years. This makes selecting proven long-term performers virtually impossible. A fund of hedge funds will typically not only charge the high hedge fund fees of 1%-4% management fee plus 15%-25% of your returns, but will also charge fees for running the fund of funds. They pile complication upon complication and charge you for it. "Oh, and the hedge fund industry as a whole hasn’t produced alpha/added value to simple portfolios for years, since its assets under management ballooned." [FTalphaville] With typical leverage, that has grown over 15 years from around 20% to over 40% now, you get 40%more risk than mutual fund rules with no significant added performance, just more costs. And because that added leverage risk is so often concentrated in the same areas by all the large funds, inducing systemic risk, when those bets go wrong they can go very wrong. With all the above, an investor must live with the risk of having just one fund manager, or picker of rotating funds in a fund of funds. Imagine a place where you could go to sign up for an account where you could review track records and styles and risk levels of not just one guy, but up to 15 or so, and check on your account signup form how you want to spread your money among these guys. And imagine that all these managers have had to compile top ranked hedge fund performance levels for up to 15 years under the safety level of SEC rules for mutual funds. And imagine you could get all this at roughly cost of a mutual fund. It would be like opening an account and checking the names of Peter Lynch, Warren Buffett, and all your favorite hedge fund managers to gang tackle your investment objectives. And as in any team sport, if one guy hits a cold streak, the others will carry him. No dependence on one manager. Well there is such a place - Marketocracy Capital Management. Here, thousands of people from all walks of life, from retired and active fund managers to ordinary individual investors, compete online with virtual funds. If your track record qualifies, you can open a GIPS account for real money tracking of your model fund and have client accounts track your model. My fund is one of those, ticker BPMF. FOLIOfn Institutional can open a client SMA where you can pick and choose from the best of the best long-term performers. To look into this: Phone: 1-877-462-4180 email: firstname.lastname@example.org web: marketocracy.com