The performance verification provided by Theta is not considered an “audit” or “attestation” as those terms are defined by the American Institute of Certified Public Accountants (AICPA). However, in some cases, Theta Research has relied upon historical performance numbers calculated and verified by such attestations and/or audits conducted by AICPA member firms and in accordance with AICPA guidelines.
Likewise, Theta’s published performance data should not be considered as compliant with or equivalent to the Global Investment Performance Standards (GIPS).
One of the ways we are able to represent the manager performance and risk profiles as authentic is by getting statements directly from the custodian or directly from the custodian’s web platform. While we are confident that managers would never modify statement information, our commitment to our subscribers is that we publish data that has been collected and confirmed by third-party sources.
The answer to this question is yes, assuming that Theta has access to actual historical performance data from statements or online archives made available by a third-party custodian. The account to be verified should also have been trading one model exclusively and not commingled with other investments or trading models. Theta does charge a fee to verify and reproduce historical track records.
Yes. Each manager pays per year per strategy being tracked. For his fee, managers receive an actual track record that has been verified by an independent third party. Contact us regarding the other benefits of Theta strategy tracking.
In order to give custodians time to process their end-of-day transactional data and get it posted and delivered, we run our main data collection and processing on daily tracked programs each morning that follows a market day. Programs that are tracked monthly are usually updated by the 10th of each month, depending on when the tracking account custodian sends a monthly statement.
Here are just a few benefits:
Managers who want to be tracked on a daily basis must trade an account at Guggenheim/Rydex or at ProFunds. Monthly tracking can be done on accounts trading at any custodian or any platform provided Theta is given web access to the account tracked or at the least is able to receive duplicate or “other-interested-party” (OIP) statements directly from the custodial firm (electronic is preferred but hard-copies by mail are accepted, too).
In addition, it works best if the account to be tracked does not have frequent additions or withdrawals, which must be adjusted for when calculating performance.
You and your prospects will have access to your data at all times. We find that managers are the first to spot any data errors and that serves as a very good vetting process for us in catching custodial errors as they arise. Additionally, Theta’s paid subscribers will have access to the data through our Subscriber website.
The answer to this question boils down to who does the work and what you get for your money. Unlike sites that apply trading signals to the end-of-day value of a variety of market indexes, with Theta you get actual returns posted by active management strategies as applied to the asset classes for which they were developed.
Beyond that, if a manager has to furnish performance numbers or upload periodic trades to a performance database, then the manager is really working for the tracking service. At Theta, we do all of the work to obtain, verify and post performance information from third-party custodians.
Finally, part of a thorough broker/dealer or RIA due diligence review usually requires verification of a manager’s track record usually from poring over statements or similar source documents. With Theta, that step has already been completed. By using Theta’s unique “Guest Pass,” a due diligence team can access an investment manager’s full track record as well as all of the analytical and statistical analysis Theta is known for.
No. Theta allows what we call “signal managers” to also participate in building actual track records. These investment professionals provide trading signals on a periodic basis, but do not manage client accounts directly. Instead, a third-party Investment Advisor, usually after seeing the signal manager’s actual track record on Theta, will work out an arrangement in which the Advisor trades the signal on behalf of clients.
No, our only subscription terms are annual. We encourage subscribers to use the service all year to monitor their favorite managers as well as be in a position to evaluate new managers and new programs from existing managers as they are added to the database.
No, Theta’s activity is limited to documenting actual track records of active investment managers and publishing this data for the benefit of its subscribers. Subscribers are encouraged to contact managers directly if they want to explore investing in one or more of their models.
When a manager contracts with us to track his model(s), we collect data in one of two ways. If the data is daily transactional data, we receive login permission from the manager to directly access a custodial website where the account is being traded. Then, every morning we automatically login to those websites, download the previous day’s transactions and resulting position information, import it into our databases, and then reconcile our data with the custodian’s. If the data is monthly, we enter the data to our database from an account statement we receive directly from the custodian or by accessing a custodial webpage.
See our pricing page for more information.
For models that are tracked daily, the data is updated early each morning following a market day. Monthly tracked models, on the other hand, are updated as soon as source documentation is available, usually no later than the 10th of the month following the month being reported.
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