[marketocracy funds family]

Release Date:

January 8, 2004

Analysis by Lipper Shows Marketocracy Masters 100 Fund has Beaten S&P 500 Index 98% of time

Fund's "Batting Average" for 12-month Holding Periods is 0.983

LOS ALTOS, CA - Marketocracy Funds¹ today announced that a Lipper report commissioned by Marketocracy shows that the Marketocracy Masters 100 Fund (Nasdaq: MOFQX) had a 98.28% Success Ratio² of beating the S&P 500 Index³ over the time period November 5, 2001 (the Fund's inception date) to December 31, 2003. Similar to a batting average, the Lipper Success Ratio looks at every trading day since the fund inception⁴ and calculates how often an investor in the Masters 100 Fund, holding the Fund for one year, would have beaten the S&P 500 Index. Out of 291 available trading days, the Fund beat the S&P 500 Index 286 times.

Additionally, the Fund was up 12.41% for the fourth quarter of 2003, outpacing the S&P 500 Index. During the same period, the S&P 500 Index was up 12.17%. The Masters 100 Fund has now beaten the S&P 500 Index in 7 out of 8 full quarters since inception 4 .

"We think the Lipper Success Ratio, or what we call the Fund's "Batting Average," is one of the most important indicators of how well we are doing for our investors," explained Ken Kam, portfolio manager for the Masters 100 Fund. "Very few people invest only on the last day of the year or on a fund's inception date. We believe that looking at returns for every day an investor could have invested in the fund is a better indicator of how well a fund has performed."

Investment Objective: Consistently Deliver Higher Returns with Less Risk

"Our investment objective is to consistently deliver better than average performance in any kind of market environment with less risk," said Ken Kam, portfolio manager for the Masters 100 Fund. "The Lipper Success Ratio is the best measure of performance consistency that we've seen."

Performance Information and Fund Availability
The following is the performance summary for the Fund as of 12/31/03:

	RETURNS (Unaudited)
	*Cumulative* (as of 12/31/03)			*Annualized* (as of 12/31/03)
	Q4-2003	YTD-2003	Since Inception (11/5/01)	Average One Year	Average Annual Since Inception (11/5/01)
MOFQX	+ 12.41%	+ 42.82%	+ 39.46%	+ 42.82%	+ 16.70%
S&P 500 Index³	+ 12.17%	+ 28.67%	+ 4.66%	+ 28.67%	+ 2.13%
DJIA Index⁵	+ 13.39%	+ 28.26%	+ 16.17%	+ 28.26%	+ 7.20%
NASDAQ Index⁶	+ 12.29%	+ 50.77%	+ 12.76%	+ 50.77%	+ 5.73%

CUMULATIVE RETURNS

Q1-2002
Q2-2002
Q3-2002 Q4-2002 Q1-2003 Q2-2003 Q3-2003 Q4-2003

MOFQX
+ 5.18%
- 3.10%
- 15.52% + 8.74% - 7.79% + 22.78% + 12.22% + 12.41%

S&P 500 Index
+ 0.28%
- 13.39%
- 17.27% + 8.44% - 3.15% + 15.39% + 2.65% + 12.17%

Returns are after all fees for the Masters 100 Fund and are unaudited.
The above indices are unmanaged and cannot be invested in directly.
Returns assume reinvestment of dividends and distributions.

All Marketocracy Funds are available through most major brokerages, including Charles Schwab, Fidelity, TD Waterhouse, and E*TRADE.

For a prospectus & application containing more complete information about the Fund, including fees and expenses, please visit this link: http://funds.marketocracy.com/mof/prospectus.html/?MKT=PR3 or call 888-884-8482. Please read it carefully before you invest.

Past performance is not a guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost.

The Fund can invest in small and medium sized companies, which are often more volatile and less liquid than larger, more established companies and therefore increase the volatility of the Fund's portfolio. Additionally, the m100 group, upon which the Masters 100 Fund's portfolio manager relies in managing the Fund, is comprised of individuals who may be amateur investors, not investment professionals. Their track records are based on the performance of a simulated stock portfolio on the website www.marketocracy.com. Members of the m100 group are neither employees of the Fund or its adviser, Marketocracy Capital Management, LLC

About Marketocracy Capital Management, LLC
Marketocracy Capital Management is the investment adviser to the Masters 100™ Fund and the Technology Plus Fund. Marketocracy Capital Management is a wholly owned subsidiary of Marketocracy Inc.

Distributor: Rafferty Capital Markets LLC
Date of First Use: January 8, 2004

1. Rafferty Capital Markets, LLC White Plains, New York, serves as Marketocracy Funds' principal underwriter and distributor of shares.
2. Lipper Success Ratio Definition: The consistency of a fund's performance compared to an absolute benchmark. This is the ratio of the number of times that a fund met or exceeded a specified performance level (hurdle rate) for a given time period compared to the total number of observations. For example, if a series of 12-month performance periods were being examined on a monthly increment over a ten-year time period, then 109 observations would be generated. If the fund achieves the specified performance level (10% for example) for 54 of the 109 12 month periods, then the success ratio would be 49.5%. The specified performance level (hurdle rate) can be a Fixed Return, Lipper Index, Security Index or another Fund. In setting fixed hurdle rates, 0%, 5%, 8% and 11% are illustrative of long-term expectations for preservation of principal, returns from fixed income investments, returns from conservative equity investments, and returns from aggressive equity investments. To download the study go to: http://funds.marketocracy.com/MOFLipper
3. Standard & Poors 500 Index is comprised of 500 selected common stocks most of which are listed on the NYSE and cannot be invested in directly.
4. The Inception date of the Masters 100 Fund is 11/05/01.
5. Dow Jones Industrial Average (DJIA) Index is a price-weighted average of 30 blue-chip stocks.
6. NASDAQ Composite (NASDAQ) Index is a broad-based capitalization-weighted index of all NASDAQ (National Market & Small-Cap) stocks.

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Distributor: Rafferty Capital Markets LLC Date of First Use: January 8, 2004

Distributor: Rafferty Capital Markets LLC
Date of First Use: January 8, 2004