Marketocracy

shummie · #1 01-31-2005, 10:38 PM

I just read about this site/fund in a Fortune article. www.marketocracy.com

Anyone invest in this fund and/or "run a fund" for them?

The idea is really cool I think. Basically what they do is let people invest play money. Then they choose the most succesful "managers" over a certain period of time and select their stocks to go into the portfolio. The result is a fund full of highly speculative mid-cap stocks. The fund has been doing pretty well since its inception. Maybe someone else can give a better evaluation of its performance.

To me it seems like the kind of thing that would perform "extra well" during a good market and "extra poorly" during a bad market.

What do people think?

- Jason

poker-penguin · #2 02-01-2005, 12:15 AM

I have four "play money" funds there. I'm currently one of the 100 top investors that they use to run their fund.

My "funds" returns very closely follow the general pattern of the indexes (only with steeper climbs and slower descents). So, I think you're wrong about how the m100 fund would do.

Plus they pay me when I'm in the top 100, so I love them. [img]/images/graemlins/wink.gif[/img]

They have a number of nice tracking tools that you could just use for your own portfolio.

For the record, I don't have a lot of speculative mid cap stocks. I can't speak for the m100 fund as a whole. My best impression of the ranking alogrithm (to decide who the top 100 funds are) is that it weights 1 year performance more than other periods, but that's specualtion.

Hope that helps - trying to concentrate on a limit (ugh) tournament at party at the same time, so won't proof read or anthing.

shummie · #3 02-01-2005, 09:39 AM

Thanks for the reply.

If you don't mind, how much do you get paid for being in the top 100?

- Jason

poker-penguin · #4 02-01-2005, 02:13 PM

I don't mind, you could probably find it out for yourself pretty easily.

The compensation system is on two levels - 2/3s of the fees that the m100 fund pays to Marketocracy.com goes to that quarter's top 100 funds (they do it on funds rather than managers, so it's possible for one person to more than one of the top funds). You also get points for every month your fund spends in the top 100 - the points are used to calculate your share of the residuals (the last 1/3 of the management fees) I think points last about 3 or 5 years or something.

So the short answer is that it depends. Right now they are expecting to pay about $100 per top 100 fund per month. So I'll get maybe $330 (including my previous points) at the end of the quarter.

Not exactly Wall Street money. In fact, it's only about as good as a placing in a $100 SNG (not that I have the BR to try that). But it's not bad for doing something I enjoy in my spare time.

So, until the m100 fund gets bigger, and or my second and third funds get into the rankings, it's not enough to go pro.

zerosum · #5 02-04-2005, 07:56 PM

Please post public links to your funds. I'd like to see them.

poker-penguin · #6 02-05-2005, 07:19 PM

The m100 list can be found at:

http://www.marketocracy.com/cgi-bin/...dexPage/bfix=1

The public page of my fund is:

http://www.marketocracy.com/cgi-bin/...JePnMfMaKiAbDc

Looking at them, they don't tell you much about my holdings.

My five positions above 5% of my fund are:
STST (about to sell down to cash in on a 180% return)
CRDN (probably hold despite 80% run up, I like the firm)
GR and BA (relatively new, I like their 3 year prospects)
UDI (90% run up, will reexamine)