Tuesday, June 02, 2009

Update On Marketocracy Portfolio

Fund Performance for salvadordali's Mutual Fund
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 ended 30 April, the S&P 500 has gained 1.33% while my fund has gained 51.1%. For the 6 months ended May 31 the S&P 500 has gained 4.05% while my fund has gained 60.64%.There are usually rules which dictate that you must be at least 65% 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

recent returns right curve

Last Week 6.78%
Last Month 18.61%
Last 3 Months 79.46%
Last 6 Months 64.69%
Last 12 Months N/A
Last 2 Years N/A
Last 3 Years N/A
Last 5 Years N/A
Since Inception 10.38%
(Annualized) 12.38%
Last Week 3.66%
Last Month 5.50%
Last 3 Months 25.83%
Last 6 Months 4.05%
Last 12 Months N/A
Last 2 Years N/A
Last 3 Years N/A
Last 5 Years N/A
Since Inception -25.14%
(Annualized) -28.97%

Last Week 3.12%
Last Month 13.11%
Last 3 Months 53.62%
Last 6 Months 60.64%
Last 12 Months N/A
Last 2 Years N/A
Last 3 Years N/A
Last 5 Years N/A
Since Inception 35.52%
(Annualized) 41.34%
graph of fund vs. market indexes
SMF m100 S&P 500 DJIA Nasdaq
left curve recent returns vs. major indexes right curve

SMF 4.78% 16.36% 45.55% 53.16%
S&P 500 2.57% 0.00% 15.70% 2.96%
DOW 2.44% 0.00% 11.72% -3.15%
Nasdaq 2.84% 0.00% 16.08% 12.51%

alpha/beta vs. S&P500 right curve

Alpha 57.32%
Beta 1.27
R-Squared 0.84

left curve turnover right curve

Last Month 12.44%
Last 3 Months 210.83%
Last 6 Months 256.59%

Symbol Price Value Portion of Fund Gains Inception Return
EXM $11.22 $67,320.00 5.82% $58,738.60 61.88%
ERX $39.19 $156,760.00 13.55% $64,963.22 40.25%
STT $47.35 $118,375.00 10.23% $38,918.54 38.54%
BAC $11.62 $69,722.40 6.03% $29,815.62 22.44%
GCH $12.57 $89,962.77 7.78% $18,502.31 21.12%
WFR $20.99 $125,940.00 10.89% $20,176.56 19.08%
F $6.13 $122,600.00 10.60% $14,535.62 13.45%
ACTG $5.70 $68,400.00 5.91% $12,530.70 13.12%
DLTR $45.62 $71,167.20 6.15% $7,465.94 9.01%
QSII $49.99 $49,990.00 4.32% $7,098.72 7.51%
SXE $27.75 $83,250.00 7.20% -$4,710.47 -5.36%
DZZ $19.38 $48,449.25 4.19% -$5,578.06 -10.32%

p/s photo: Fiona Xie


solomon said...

I have yet to begin my investment in Marketocracy. Partially like you, I am not comfortable with the mkt volatility.

Back here, I foresee a mega O&G conglomerates (something like Sapcres - Petra - Kencana) will create better attraction theme in the upcoming INVEST MALAYSIA.

The Astro-Maxis is a good deal, but the Saudi partner won't be interested to look at it.

What say u Dali?

~The Metamorphosis~ said...

Hi Dali,
it is very interesting to see your technology stock choices, I bet you have been doing quite some study in Nasdaq stocks. To me, those companies are not big players, but venture in niche segment, green energy, health-related. Seems like a very forward looking portfolio...

just wondering if this model portfolio stays as model only? :)