Friday, May 08, 2009

Update On Marketocracy Portfolio

Fund Performance for salvadordali's Mutual Fund May 05, 2009
left curve fund rankings right curve

For the six month period ending March 31, 2009 your fund outperformed 97.8% of the other funds on our site. Your forum and other privileges are based on this ranking

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.

The main objective of the fund is to beat the S&P 500. For the past 6 months, the S&P 500 has gained1.33% while my fund has gained 51.1%. There are usually rules which dictate that you must be at least 60% or 80% invested at all time, and your aim is to beat the index. If you can consistently beat the index, you should be golden. If you look at the turnover rates, I have increased the trading activity over the past two months as I think the recovery is still volatile and is more suited to be traded.

modern portfolio theory, you basically aim to beat the index, based on the premise that:

over the long run stocks offer superior returns

hence if you consistently beat the index, over the long run, you should have superior returns

graph of fund vs. market indexes
SMF m100 S&P 500 DJIA Nasdaq

left curve recent returns vs. major indexes right curve

Beating Today MTD QTD YTD
5.72% 5.71% 32.23% 39.14%
S&P 500 1.74% 3.57% 13.48% 0.98%
DOW 1.21% 2.97% 10.54% -4.17%
Nasdaq 0.28% 2.14% 14.75% 11.23%

left curve recent returns right curve

Last Week 10.72%
Last Month 19.90%
Last 3 Months 46.54%
Last 6 Months 51.11%
Last 12 Months N/A
Last 2 Years N/A
Last 3 Years N/A
Last 5 Years N/A
Since Inception 0.27%
(Annualized) 0.35%
Last Week 5.72%
Last Month 7.44%
Last 3 Months 9.35%
Last 6 Months 1.33%
Last 12 Months N/A
Last 2 Years N/A
Last 3 Years N/A
Last 5 Years N/A
Since Inception -26.58%
(Annualized) -32.68%
Last Week 5.00%
Last Month 12.46%
Last 3 Months 37.18%
Last 6 Months 49.78%
Last 12 Months N/A
Last 2 Years N/A
Last 3 Years N/A
Last 5 Years N/A
Since Inception 26.85%
(Annualized) 33.02%

Symbol Price Value Portion of Fund Gains Inception Return
EXM $9.50 $57,000.00 5.38% $48,418.60 51.01%
BRCD $5.96 $89,400.00 8.43% $28,839.56 47.62% Details
BAC $12.69 $76,140.00 7.18% $36,233.22 27.27% Details
ERX $34.00 $170,000.00 16.04% $46,937.10 29.08% Details
F $6.26 $125,200.00 11.81% $17,135.62 15.86%
QSII $55.14 $55,140.00 5.20% $12,248.72 12.97%
WFR $18.71 $112,260.00 10.59% $6,496.56 6.14%
DLTR $42.78 $66,736.80 6.30% $3,035.54 3.66%
GCH $10.14 $72,571.98 6.85% $1,111.51 1.27% Details
ACTG $4.67 $56,040.00 5.29% $170.70 0.18% Details
SXE $25.22 $75,660.00 7.14% -$12,300.47 -13.98% Details

p/s photos: Angelababy


ian said...

Congratulations Mr SD. You have accomplished what Warren Buffet has failed to do - beat the S & P 500.

Ian Yoong

Sealand Blog said...

what are you going to do with the stocks in red colour?

And how did you pick those stocks? Didnt even heard of these names before! Did you read all the us company statements from A-Z?

Anyway superb job!

solomon said...

I checked all the stocks you entered and most of them are familiar, consistent with yr blogging ideas.

I have opened mine and will compete with you. No competition no fun....see whether a non financial man can beat your fund....better than losing quick bucks in real mkt and get the whole life mumbling from wife?? Ha ha...

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