Tapping on the new era of web 2.0, Marketocracy created a special mutual fund – a portfolio following the best performing investors who are ordinary people. Think of wiki-investing.
Marketocracy today has 3 companies:
- Marketocracy Inc
- Marketocracy Market Services – A virtual investing portal with performance tracking. Top investors will be selected as analysts under m100 team (~500 pax).
- Marketocracy Capital Management LLC – Fund management services. Following the top marketocracy investors’ model portfolio.
First level – Manage virtual money and prove your worth
Anyone can just open a virtual account to start your own fund worth $1 million. To make it real, you will be subjected to federal compliance rules and marketplace trading constraints as a mutual fund manager. The purpose is to make the game more stringent than merely managing a personal account.
[Free Ebook] How should you invest your first $20,000?
We asked 14 Singapore finance bloggers to share what they would do if they could go back in time and invest their first $20,000. They can no longer rewind time, but you can learn from their experience and hopefully start with a better footing.
Second level -Your results will be tracked and the best will be selected for m100
Marketocracy will track and verify the investment performance of thousands of members’ portfolios, and every single trade there was made. The best and skilled investors will be contracted to Marketocracy Data Services’s m100 team of 500 analysts. Currently, Marketocracy claimed to have more than 100,000 members. Analysts who don’t perform are replaced from the m100 bench.
Third level – Best of m100 will become Marketocracy Masters
From the bench of 500, the best m100 members will be selected as Marketocracy Masters, whose model portfolios will be used to guide professional investment management at Marketocracy Capital Management, an S.E.C. registered investment advisor. As well, after further vetting and meeting performance benchmarks for an additional two years, Marketocracy will take the most qualified m100 members and make their model portfolios available to clients of Marketocracy Capital Management’s separately managed account program. Marketocracy Masters must have track records that show outstanding returns for at least five years, even during down-market periods.
As of 3 Nov 2010, the average return of the Marketocracy Masters is 20.1% since inception. See the 7 Masters in the picture below (taken from Marketocracy website). It did not state when exactly was it incepted but it definitely has been more than 5 years. Note this is not the m100 fund but just the Marketocracy Masters’ results.