Fund Out Paces NASDAQ by 30.6 Percentage Points Since Inception(1)
Marketocracy Funds(2) today announced that the Technology Plus Fund (Nasdaq:TPFQX), was the #2 ranked technology sector fund for the 3 years ended Dec. 31, 2003, according to Bloomberg(3). As of Dec. 31, 2003, the Fund has returned 12.7% since inception (December 29, 2000). During the same period, the NASDAQ Index(4) was down -17.9% and the S&P 500 Index(5) was down -11.7%. According to the Wall Street Journal,(6) the Fund’s average annual return for the 3 years ended Dec. 31, 2003 was 4.06% as compared to the average Science & Technology fund which annually lost -17.2% over the same period.
Fund Delivered Higher Return with Less Risk
The combination of solid stock picking and hedging helped the Technology Plus Fund outperform its peers and the major market indices with less risk. Above-market returns are usually accompanied by above-market risks. The Technology Plus Fund, however, delivered its returns while maintaining a beta(7) of 0.81 since inception compared to the NASDAQ Index’s beta of 1.38 for the same period.
“The Fund invests in Info Technology, Telecommunications, and Healthcare stocks, generally the fastest growing sectors of the economy, because we believe that in the long-run, growth is the primary driver of stock prices,” explained Dr. Paul McEntire, co-portfolio manager for the Fund. “To reduce the risk and moderate the short-term volatility inherent in technology stocks, the Fund hedges up to 40% of the portfolio.”
Performance Information and Fund Availability
The following is the performance summary for the Fund as of 12/31/03:
-0- *T
RETURNS: (Unaudited)
——————————————————
Annualized (as of
Cumulative (as of 12/31/03) 12/31/03)
—————————— ———————–
Since Average
Q4-2003 YTD-2003 Inception Average Annual Since
(12/29/00) One Year Inception
(12/29/00) —————- ——– ——— ———- ——— ————- TPFQX + 2.79% + 30.72% + 12.72% + 30.72% + 4.06% —————- ——– ——— ———- ——— ————- S&P 500 Index(5) + 12.17% + 28.67% – 11.66% + 28.67% – 4.04% —————- ——– ——— ———- ——— ————- DJIA Index(8) + 13.39% + 28.26% + 3.09% + 28.26% + 1.02% —————- ——– ——— ———- ——— ————- NASDAQ Index(4) + 12.29% + 50.77% – 17.89% + 50.77% – 6.34% —————- ——– ——— ———- ——— ————-
— The above indices are unmanaged and cannot be invested in
directly.
— Returns assume reinvestment of dividends and distributions.
1. The Inception date of the Technology Plus Fund is 12/29/00 2. Rafferty Capital Markets, LLC White Plains, New York, serves as
Marketocracy Funds’ principal underwriter and distributor of
shares. 3. As reported by Bloomberg. Rankings and performance based on total
return for the 3-year period ending 12/31/03 for the technology
sector, a category comprised of 268 funds. 4. NASDAQ Composite (NASDAQ) Index is a broad-based
capitalization-weighted index of all NASDAQ (National Market &
Small-Cap) stocks. 5. Standard & Poors 500 (S&P 500) Index is comprised of 500 selected
common stocks most of which are listed on the NYSE 6. As reported in the Wall Street Journal based on data from Lipper.
Performance based on annualized returns for the 3-year period
ending 12/31/03 for the science & technology sector, a category
comprised of 266 funds. 7. Beta is a measure of an investment’s relative volatility or risk. A
beta of 1.00 indicates a level of risk that is equal to the
market. A beta less than 1.00 implies less risk than the market. A
beta greater than 1.00 implies greater risk than the market. 8. Dow Jones Industrial Average (DJIA) Index is a price-weighted
average of 30 blue-chip stocks. *T
All Marketocracy Funds are available through most major brokerages, including Charles Schwab, Fidelity, TD Waterhouse, and E*TRADE.
For a prospectus & application containing more complete information about the Fund, including fees and expenses, please visit this link: http://funds.marketocracy.com/tpf/prospectus.html?MKT=PR2 or call 888-884-8482. Please read it carefully before you invest.
Past performance is not a guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost.
The Technology Plus Fund is subject to greater than average risk because of its focus on companies and industries related to technology. The Fund can also invest in small and medium sized companies, which are often more volatile and less liquid than larger, more established companies and therefore increase the volatility of the Fund’s portfolio. The Technology Plus Fund may also engage in short-selling and invest in futures and options, and thus the Fund is subject to greater investment risks than mutual funds that do not engage in such strategies. Returns assume reinvestment of dividends and distributions. Past performance is not a guarantee of future results. Investment returns and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund’s “long” portfolio manager is Marketocracy Capital Management. The Fund’s “short” portfolio manager is Skye Investment Advisors.
About Marketocracy Capital Management, LLC
Marketocracy Capital Management is the investment adviser to the Masters 100(TM) Fund and the Technology Plus Fund. Marketocracy Capital Management is a wholly owned subsidiary of Marketocracy Inc.
Distributor: Rafferty Capital Markets LLC
