Today is the 10 year anniversary of the Van Meerten New High portfolio on Marketocracy and I'm happy to report that the portfolio's average annual return of 9.90% beats Warren Buffett's Berkshire Hathaway (NYSE:BRK.B) annual return of 9.35% by 5.88%.
During the same 10 year period the S&P 500 Stock Index returned only 5.95% so the portfolio beat the market by 66.39%.
Although Marketocracy has the fund classified as a Quant fund there are some important differences. The objectives of the fund in order of priority is:
- Capital preservation
- Select stocks trading above their moving averages
- Initial purchases should have hit new highs in at least 50% of the last month's trading sessions
- A sell discipline to minimize downside losses
- Unlike most Quant funds it does not stay fully invested - If market conditions are uncertain and no stocks meet the purchase criteria no additions are made until conditions improve
I am trying to manage a portfolio designed for the person that has already accumulated significant assets or has a large self-directed IRA and feels protecting their nest egg is more important than trying to squeeze a few more percentage points of return in the short run.
The portfolio should not be volatile and over the past 10 years the Beta has been .79 more than 20% less than the market.