Anirban posted this on another board. I co-opted it here.
Wall Street has never been known for its patience. When innovative companies do not deliver results on schedule, their stocks can take a beating. This recently happened to Solazyme (NASDAQ: SZYM), and Marketocracy Master Justin Uyehara believes the selloff has brought the stock down to a level from which it can easily double. He is taking advantage of Wall Street’s impatience by increasing his position.
This is not unusual behavior for Justin when it comes to small companies with big potential. Since 2003, Justin has averaged 28.3%, nearly triple the return of the S&P 500’s annual return of 9.7%. You can view Justin’s top five holdings, learn more about his strategy, and track his progress with monthly Performance Insights emailed directly to you at the end of each month by visiting our website.
More:
http://www.forbes.com/sites/kenkam/2014/08/29/growing-an-org…
Jeb
7 Likes
Alluring stuff to be sure (Uyehara’s returns). From his website:
With a turnover rate that at times exceeded 3000%/year, Justin has a 10 year historical performance record with Marketocracy with an annualized return of 30% a year.
But what does it translate into when you factor in taxes? Following is a link to a recent Barry Ritholtz story about the world’s greatest trader versus S&P index:
Over 24 years, you tally up gains and losses. The markets are up, on average, about 9.3 percent annually. You, the World’s Greatest Trader, do much better — 40 percent better. That’s better than most of today’s hedge funds. It is certainly better than most average mom-and-pop investors.
How did you do vs. your friends the passive indexers?
About the same.
http://wapo.st/1xjB4kW
I realize the purpose of this post was to highlight how SYZM has caught the attention of a guy who’s got a good track record picking stocks, but felt compelled to throw in the cautionary note. And of course, there’s a middle ground (as evidenced by the largely buy and hold MF ethos) that will get you market beating returns (it has for me), without resorting to 3000% turnover a year (wow…).
- Khleb
5 Likes
Whoops - haven’t mastered closing out quotes, but should be evident from where I’ve attempted!
Thanks for posting that. This particular item in his investment strategy tab stood out:
‘It’s rare for Justin to hold on to a stock for more than a month.’
http://marketocracy.com/justin-uyehara?tab=strategy
Well, I guess it would be with 3000% turnover…
And from his stock picking skill tab:
‘Over the past 10 years, Justin has invested in a total of 1204 stocks at one time or another and made money on 797 (66%) of those stocks.’
Wow, that’s a lot of companies. 10 per month he’s invested in?!? How many does he investigate?
-srslydude
‘It’s rare for Justin to hold on to a stock for more than a month.’
I have trouble taking this statement at face value. Some of the funds that hold hundreds of stocks still have most of their capital in just a few. Statistically his average holding may be gone in just a month, but I bet there are a few core issues he holds to do the heavy lifting. Even Nostradamus wouldn’t get those returns with that much churn.
But I’m just speculating.
Jeb
2 Likes