How It Works

My mission is to run an investment firm where managers are selected for their skill not their pedigree. -Ken Kam

What Is A Separately Managed Account?

The managers we interview for Forbes are available to clients of Marketocracy Capital Management's Separately Managed Account (SMA) program. SMAs are like mutual funds that are built to serve just one person -- you. You can choose the managers to suit your preferences for investment styles, time horizons, and level of risk. You will have information for each manager that you need to replace them when you see fit, or allocating them more capital when they are performing.

What Are The Minimums?

Our minimum SMA account size is $20,000. There is no minimum holding period.

What Does This Cost?

For accounts less than $250,000, MCM's annual management fee is 1.50%. In addition, FOLIOfn -- the brokerage firm where your account will be domiciled -- charges a brokerage fee of 0.40% with an annual minimum of $100. If you would like to invest more than $250,000, the fees would come down.

The returns of our Marketocracy model portfolios are reported net of imputed management fees of 1.95% per year. In our experience, the actual returns to clients have a slight bias to outperforming the Marketocracy models because the fees on our separately managed accounts are lower than the imputed fees on our models.

Who is FOLIOfn?

  • Independent brokerage firm that enables trading portfolios of stocks called folios
  • 24x7 access to view your holdings
  • FOLIOfn takes custody of your account and provides SIPC insurance
Account Value MCM Advisor Fees Brokerage Fee Total
$20,000 - $50,000 1.50% $100 1.50% + $100
$50,001 - $250,000 1.50% 0.40% 1.90%
$250,001 - $500,000 1.40% 0.30% 1.70%
$500,001 - $1,000,000 1.30% 0.25% 1.55%
$1,000,001 - $2,500,000 1.10% 0.20% 1.30%
$2,500,001 and up 1.00% 0.15% 1.15%

Why FOLIOfn?

We use FOLIOfn because their fee structure and the ability to hold fractional shares enables us to match your model's performance very closely. It also enables our clients to make deposits or withdrawals in small amounts.

Example: Say your portfolio has 20 positions in it. If you add $1000 to your account you would need to make 20 trades to keep the account in sync with your model. If you paid $10/trade, your commissions would be $200 or 20% of your transaction. Even if you paid $1/trade, your commissions would still be 2% of your transaction.

If you are currently paying retail commissions and fees to manage your own brokerage and/or IRA account, it is possible that this account will reduce your commissions. FOLIOfn does charge for certain extra items like paper statements, wire transfers, paper checks, etc. These fees are rare, and are usually the result of a client-initiated action. Here is a list of these service fees.

How We Use FOLIOfn

The managers you select continue to manage their virtual funds at Marketocracy.com. Their virtual trades are implemented automatically through FOLIOfn’s twice daily window periods. During the window period, each model is reviewed and each model’s trades are synchronized to all the real accounts following the model.

Ready To Start?

Complete and digitally sign a Client Agreement.

Email A Question Schedule A Call