Wednesday, January 07, 2009

My Marketocracy Portfolio


A few months back I discovered a brilliant site call Marketocracy.com, a site which allows you to register, trade and track your portfolio. Generally, trades are all based in US markets, and you can buy and sell ETFs, foreign ADRs, etc. I thought it would be useful to see if I can pit my skills and experience to beat the indices over time in a transparent format, instead of just talking about it. Its been some years since I was managing funds. Mind you, history has shown that at least 85%-90% of all mutual funds cannot beat their respective benchmarks.

My portfolio was started on 1st August 2008. Marketocracy lets you manage a virtual portfolio of $1M in a simulated trading environment, allowing you to track your performance accurately and compare your fund management skills to other investors and professional fund managers. Yes, they do take into account transaction cost as well. If your track record turns out to be one of the best, you could be hired to help manage a real fund at Marketocracy. It's a great place to learn, and a great place to prove your talent. They also have important rules to ensure that you are running an actual investing portfolio and not just sitting on cash:
  • No position can exceed 25% of your total portfolio value.
  • Half your portfolio must be comprised of positions under 10% each.
  • Your cash position isn't limited by this guideline, although you must be 65% invested
My fund was smartly called SMF, or Salvador Mutual Fund (no, not the foul language acronyms you are thinking). So far so good, although the first couple of months was iffy. SMF fund performance in orange colour.
ecent returns vs. major indexes right curve



Beating Today MTD QTD YTD
SMF
-0.45% 6.12% 6.12% 6.12%
S&P 500
0.55% 2.70% 2.70% 2.70%
DOW
0.27% 2.01% 2.01% 2.01%
Nasdaq
0.85% 3.23% 3.23% 3.23%

RETURNS
Last Week 9.19%
Last Month 17.69%
Last 3 Months 6.60%
Last 6 Months N/A












S&P500 RETURNS
Last Week 4.97%
Last Month 6.93%
Last 3 Months -4.42%
Last 6 Months N/A












RETURNS VS S&P500
Last Week 4.22%
Last Month 10.75%
Last 3 Months 11.02%
Last 6 Months N/A













Go and try the site, but its geared towards those who have a decent understanding of US markets, still fun. Oh, before I forget, my current portfolio with Marketocracy (I think I barely turned over 40% of the fund so far):
a) Japan Smaller Cap Fund

b) iShares MSCI Singapore Index
c) iShares MSCI Malaysia Index
d) Acacia Research Corp
e) China Mobile
f) iShares MSCI Japan Index
g) Visa
h) iShares FTSE/Xinhua China 25 select
i) Mizuho Financial Group
j) Yahoo!
k) Greater China Fund

l) iShares MSCI Brazil Index

Some of my recent sells include iShares Basic Materials, Pfizer, Savient Pharmaceuticals, Apple, Axion Power, Starbucks and Oil Ultra Short ETF.

p/s photo: Maya Karin

4 comments:

Frankie Lam said...

Hi Dali,
Thank you for sharing some of your cool stuff.
I think your timing is pretty good, i have pumped in 60% of my cash into US market since July 08 until now already.
I am an avid fan of Buffett, so my holding is like AXP (bounght at 50%discount from intrinsic value), BRK.B (bounght at 30% discount) and a little bit of GE (bought at 50% discount from IV).
It is still cheaper now and i am at least 20% under-water now. How nice if i hear from you earler :-)

But i am very confidence my portfolio will double in value in 3to 5 years time and now is the buying opportunity of our life time.

Since there is a great opportunity now, is there any way we can start some hedge fund together to buy US share? With your timing skill and my patience, we can easily beat the DJIA.

Few of my frens asked me to invest and monitor for them but I am still figuring out a way on how to do it.

Regards,
Frankie Lam

Salvatore_Dali said...

Frankie,

Actually I am looking for some channels to go back to funds mgmt. If you have the platform n backers, pls email me yr personal email so we can talk further.

Eric How, said...

Thanks for the cool web. I still new for the US market & thanks God I follow your blog

stoneman said...

One of the tax efficient ways to invest in US is to set up a Cayman Island LLC [limited liability by shares company]. It is pretty much a hedge fund structure.

A singapore company is also doable, cheaper but not necessarily tax free.