DISCLOSURES: Marketocracy Model Portfolios

Marketocracy model portfolios start out with a hypothetical $1 million and 100,000 shares outstanding for an initial share price (or net asset value) of $10. At the end of each trading day, the model portfolio’s share price is calculated by valuing each position at the market’s closing prices, deducting total expenses of 1.95% a year, and dividing by the number of hypothetical shares outstanding.

 

A Marketocracy model portfolio’s returns are the result of the model manager’s trading decisions made in real-time. To buy or sell a position, the model’s manager enters a buy or sell order at www.marketocracy.com. Hypothetical market orders are assumed to be filled at the stock’s next actual market price after the trade is entered for up to 10% of the actual trade’s volume. All trade fills are charged a commission of 5 cents per share. Dividends and other earnings are reinvested

 

For all model performance results, there are inherent limitations which investors should understand. Unlike an actual performance record, simulated results do not represent actual investment performance or trading. Since the trades have not actually been executed, the results may have under- or over-compensated for the impact of any of certain market factors, such as the effect of limited trading liquidity. The results presented reflect past performance and should not and cannot be viewed as an indicator of future performance of the model. Therefore, the results shown are not an indicator of the future returns a client will realize by relying on the model. Actual client results may differ from the Marketocracy models for a variety of reasons.

 

Marketocracy model portfolios are allowed to invest in securities that trade on a U.S. stock exchange. Options, futures, commodities, leverage, and shorting are not allowed. Consequently, the S&P 500, Index, which consists of 500 leading companies, is used as a benchmark for comparison. Indices are unmanaged, do not incur management fees and expenses, and cannot be invested in directly.

 

Marketocracy model portfolios are not personal recommendations for any particular investor and do not take into account the financial, investment or other objectives and may not be suitable for any particular investor. Before buying, investors should consider whether the investment is suitable for themselves and their portfolio.