Marketocracy Portfolios -- June 2007

As mentioned earlier I will maintain 2 separate Marketocracy portfolios to provide some type of performance attribution to the readers of this blog. I will publish the holdings/weights of the “Best Ideas Portfolio” on a monthly basis and discuss any new buys/sells. I will not spend much time on the “Watch List Portfolio” as it will simply hold all the stocks analyzed on the blog but not included in the Best Ideas portfolio.

Best Ideas Portfolio
FTAR ($4.20) ….weight = 5% (full position with target weight of 8%)

BOOT ($18.01)…..weight = 2% (based on my post on 6/9/2007 my sell price is $21-$23, and the stock would need to fall to below $15 for me to increase it to a full position and buy more)

CPY ($69.5)……weight =1% (I posted that I feel this stock is worth at least $105 but that is likely to change as PCA’s financials are disclosed over the next few quarters. Applying a margin of safety, I posted that I would dip my toes in the water if the stock hit $65 and initiated a 1% position at that price. If the stock falls to below $55 I will buy another 1% other than that I am on hold until I see what’s under the hood of PCA)

INFS ($2.23)……weight = 1% (I recently posted that I feel that this maybe a case of a “turnaround that never turns” but I believe that below $2.50 the shares trade at a deep discount to acquisition value. I will add another 1% in the Best Ideas portfolio if the stock dips below $2 per share)

Cash 91%

*All stocks purchased in June 2006

Performance
Best Ideas Portfolio…-0.30%
Watch List Portfolio…-0.08%
Russell 2000 ….-1.46%
Core CPI + 10% ….at this point this is not a meaningful measure for comparison purposes

Keep in mind that the two Marketocracy portfolios hold 91% and 85% in cash, respectively.

As I stated initially, I will use cumulative returns since inception until I reach a 3 year track record. After that I will use a 3 year moving average as well as cumulative performance. I would not pay much attention to the returns versus these benchmarks until there is at least an 18 month rack record and there has been at least one 12 month period with the major indexes down 10% or more.

Again, I want to mention that I have long position in all stocks mentioned in this post and have a vested interested in promoting my long positions. The “Best Ideas Portfolio” is NOT A RECOMMENDED PORTFOLIO. The weight of each stock mentioned in the post is substantially different in my personal portfolio and it would be mistake to replicate this portfolio exactly in your investment account. These portfolio are relevant in the context of this blog only.