Some thoughts on the Virtual Fund

This Virtual Fund has caused a bit of controvesy in the investing community. Some forumers feel that it is easy to simulate this kind of virtual thing as it does not involve human emotions; greed and fears. Some friends have asked me if I could develop a similar portfolio for them in real terms.

Personally, I feel that the timing of the launch of this Virtual Fund is crucial to the overall profitability so far. The fund was launched after the major correction subsequent to the sub-prime woes. The rush into China stocks over the last few sessions also contributed significantly to the gains.

If you have been following this blog, you would appreciate what I have done on a day to day basis. It was mentioned at the outset that the fund was created with a specific intent and purpose. For the benefit of people who follow my buy and sell movements, I have also detailed my daily transactions and balances. I hope to be as transparent and accountable in the whole process as this exercise could well be used as a testimonial of my fund management skills in the future.

To be fair, I have treated this fund as if I were managing real money. Personally, I also hold most of the counters in my own portfolio. The dollar value involved of course is no way near the $500,000 war chest. But the investing principle involved is similar.

As you can see, i do actively manage the counters by making timely switches, taking into account the latest market developments and the fundamental of individual stocks. Had I not been keeping myself abrest of the trends, would I have bought into so many China stocks before the current rally to maximise the return?

During the past 2 months, I was fortunate enough to develop a portfolio for a friend with an initial capital of $7,000. The investment has yielded capital gain of close to $2,000 or 28%. Her mother came to know about it and asked me to invest $5,000 for quick return. I turned her down as I never promised quick bucks!

I think there is still a lot of steam left in the China related counters. There will be profit taking here and there but in the medium term you can expect very decent return if you stay invested.
Good luck!