Right now, according to Marketocracy, my fund is not compliant.  The rules for compliance are:

1. You cannot purchase a stock so that it will increase your position to over 25% of your portfolio‘s value. If you violate this rule, your fund's effective inception date will be reset to the date that you bring the find back into compliance with all compliance rules, not just the 25% rule.
2. If a sub-25% position rises in value above the 25% threshold (without additional purchases), your fund will be out of compliance until you sell of enough to bring it below the threshold. (However, your inception date will not be reset.)
3. You may only hold up to 35% if your portfolio‘s value in cash. The other 65% (or more) must be invested in stocks. Real fund managers are paid to invest, not hold cash, and so the SEC requires that they meet this cash rule — hence we also require you to follow this rule a majority (51% or more) of the time.
4. Half of your long portfolio may be in positions that may not exceed 25% of the value your total portfolio value. That means that you can have two 25% positions taking up that entire half of the portfolio, or, you can have five 10% positions (since none exceed 25%).
5. The other half of your long portfolio may be in positions that may not exceed 10% of the value your total portfolio value. At the least, this means that you would need to hold 5 long positions worth 10% each. However, you can (and likely will) hold a few more positions to make sure you have some breathing room below the 10% threshold.
6. Negative cash balances may not exceed 5% of total portfolio value. If this happens for more than 7 days per quarter, you are out of compliance. That means that you may not spend more cash than you have to buy stock — or in other words, you may not use margin.

I'm clearly in violation of item 3.  I only have one open position right now.  Ideally, I'd like to keep the portfolio around 12-15 stocks and the rest (if any is left) in cash.  However, it's going to take some time for me to get there.  These stocks are wild and I've already bought and sold 2 positions (ZEUS, stop loss and AXYS, profit target).  I may extended the profit target and stop loss ranges if things get crazier.

The sole holindg of the fund right now is ICLR, which is currently down about 3%.  This morning, I'll be adding two more holdings.  HP and HIL have been flagged.  I'm going to open positions roughly 7-8% of the total portfolio's value.