At Marketocracy, we believe that investors should show an outstanding historical performance and a verifiable, proven track record before they manage client money. To accomplish this, we vet the track records of our analysts over time. Proven abilities should be a prerequisite to handling real money.
Over the years, we found that we could not identify investment skill by simply reading resumes and conducting interviews. The best evidence of investment skill is a superior, long-term track record.
Marketocracy enables individuals to prove themselves by managing a model portfolio in real time, and we harness the power of the Internet to do so. The managers with models that beat the broad market by an average of 1,000 basis points a year for five years then apply their skills to the management of client money. In true meritocratic form, any analyst in our online trading community can achieve success given enough talent, perseverance, and persistence. We have found people with a passion for investing and are able to prove their talent through successful returns substantiated with five to ten year track records. These track records are compliant with Global Investment Performance Standards®, a global standardization of investment performance reporting.