Sometimes I wonder about Marketocracy. I had put a simulated order through to short the mortgage REIT index fund (ticker MORT) in the short Trading fund, and it subsequently sat there unfilled by the their simulation system. I probably lost out on a few points with that one. No bother though. It would be different if this was real money and not a simulation on my recommendations. Despite the problems, the site remains the most efficient one I know of allowing you to track investment performance in real-time.
Noting these problems, I put through a number of short trades to in mortgage REIT stocks that comprise the index. These stocks shorted include the following fund components
Noting these problems, I put through a number of short trades to in mortgage REIT stocks that comprise the index. These stocks shorted include the following fund components
| ANNALY CAPITAL M | NLY US | 1,054,002 | $17,540,613.72 | 19.65% |
| AMERICAN CAPITAL AGENCY CORP | AGNC US | 390,413 | $13,394,895.35 | 15.01% |
| TWO HARBORS INVESTMENT CORP | TWO US | 393,038 | $4,763,844.70 | 5.34% |
| MFA FINANCIAL INC | MFA US | 559,465 | $4,737,986.39 | 5.31% |
| HATTERAS FINANCIAL CORP | HTS US | 159,684 | $4,454,814.60 | 4.99% |
| INVESCO MORTGAGE CAPITAL | IVR US | 200,834 | $4,316,591.84 | 4.84% |
| CHIMERA INVESTMENT CORP | CIM US | 1,553,299 | $4,280,495.21 | 4.80% |
| ARMOUR RESIDENTIAL REIT INC | ARR US | 562,756 | $4,186,904.64 | 4.69% |
| STARWOOD PROPERTY TRUST INC | STWD US | 175,468 | $4,031,592.12 | 4.52% |
| CYPRESS SHARPRIDGE INVESTMEN | CYS US | 288,318 | $4,029,892.23 | 4.51% |
| PENNYMAC MORTGAGE INVESTMENT | PMT US | 130,713 | $3,165,868.86 | 3.55% |
| NEWCASTLE INVESTMENT CORP | NCT US | 390,812 | $3,116,351.42 | 3.49% |
| DYNEX CAPITAL INC | DX US | 118,104 | $1,202,999.04 | 1.35% |
As a reminder, here is the chart on MORT. Besides the technical take, I think that the compression of industry margins and the reduction of the available pool of mortgage securities will hurt future results.
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